Photo: US Government
Last night’s top GOP congressional leaders sent a letter to Bernanke urging him against more Fed easing.There are two facts to bear in mind.
First is that this is almost entirely political. It’s popular to bash the Fed right now, and the GOP is not into the idea of more stimulus between now and the next election. (If a Republican wins the presidency in 2012, you can be sure the party’s anti-stimulus tune will change very quickly).
The other fact is that the letter is pretty much correct.
Especially this line: “To date, we have seen no evidence that further monetary stimulus will create jobs or provide a sustainable path towards economic recovery.”
And really, Bernanke probably knows this, which is why he’s become a monetary policy sceptic.
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