Congressman Jeb Hensarling (R-TX), chairman-elect of the House Financial Services Committee, issued the following statement today regarding the Federal Reserve's announcement of additional monetary stimulus.
"Unfortunately, as evidenced by today's announcement, the Federal Reserve continues to use expansive monetary policy to cover a multitude of fiscal policy sins.
"At a time of negative real interest rates and trillions in excess reserves, there is little which monetary policy can achieve to promote economic growth and much the Fed risks by its continued commitment to an overly accommodative monetary policy stance.
"The longer the Federal Reserve stays on its current course, the greater the risk to our economy and its already fragile recovery. I fear the risk of high inflation is great if this policy is not reversed in a timely manner.
"There are limits to what monetary policy can achieve. Unfortunately, it's clear the Fed plans to continue with a high risk strategy."