Congressman Jeb Hensarling (R-TX), Chairman of the House Financial Services Committee, issued the following statement today regarding the Federal Reserve's announcement of continued 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.
"Earlier today, we learned that the U.S. economy contracted during the fourth quarter of last year for the first time since 2009, with an expected GDP growth of around 1 percent. This is even more evidence that this high risk policy is not gaining any additional benefits for hard-working taxpayers, struggling families, or our fragile economy.
"There are limits to what monetary policy can achieve. Monetary policy cannot and should not replace sound fiscal policy and I fear the risk of high inflation is great if this policy is not reversed in a timely manner."