The increasing likelihood of a new Federal Reserve effort to boost
the economy has some Republicans questioning whether the central bank is
trying to help President Obama win reelection.
Congressional Republicans, wary of the Fed’s recent efforts to stimulate the recovery, said Wednesday that the its political independence could be jeopardized if officials embark on another round of stimulus so close to Election Day.
“It really is interesting that it is happening right now before an election,” said Rep. Raul Labrador (R-Idaho). “It is going to sow some growth in the economy, and the Obama administration is going to claim credit.”
“I am shocked, just shocked, that politics are going on in this city!” Rep. Tom McClintock (R-Calif.) said sarcastically.
On Thursday, the Fed’s policy-setting committee will announce its latest decisions regarding the nation’s monetary policy, followed by a press conference by Fed Chairman Ben Bernanke.
With the economic recovery continuing to lag, financial analysts believe the Fed is on the cusp of launching another massive effort to stimulate the economy. Many expect the Fed to unveil a third round of massive bond purchases known as “quantitative easing.”
By buying up billions of dollars worth of bonds, the Fed believes it can spur more economic activity by lowering borrowing costs, despite interest rates that are already near zero. Roughly two-thirds of economists surveyed by Bloomberg believe the Fed will announce “QE3” on Thursday.
Read more: http://thehill.com/business-a-lobbying/249185-republicans-question-whether-fed-carrying-water-for-obama-
Congressional Republicans, wary of the Fed’s recent efforts to stimulate the recovery, said Wednesday that the its political independence could be jeopardized if officials embark on another round of stimulus so close to Election Day.
“It really is interesting that it is happening right now before an election,” said Rep. Raul Labrador (R-Idaho). “It is going to sow some growth in the economy, and the Obama administration is going to claim credit.”
“I am shocked, just shocked, that politics are going on in this city!” Rep. Tom McClintock (R-Calif.) said sarcastically.
On Thursday, the Fed’s policy-setting committee will announce its latest decisions regarding the nation’s monetary policy, followed by a press conference by Fed Chairman Ben Bernanke.
With the economic recovery continuing to lag, financial analysts believe the Fed is on the cusp of launching another massive effort to stimulate the economy. Many expect the Fed to unveil a third round of massive bond purchases known as “quantitative easing.”
By buying up billions of dollars worth of bonds, the Fed believes it can spur more economic activity by lowering borrowing costs, despite interest rates that are already near zero. Roughly two-thirds of economists surveyed by Bloomberg believe the Fed will announce “QE3” on Thursday.
Read more: http://thehill.com/business-a-lobbying/249185-republicans-question-whether-fed-carrying-water-for-obama-
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