Republican lawmakers ask Bernanke to refrain from QE3
Republican lawmakers sent a letter directly to Federal Reserve Chairman Ben Bernanke asking him to not to initiate another economic stimulus package. Concerns about additional quantitative easing prompted the GOP members to draft the letter advising the central bank chairman not to employ further tools to stimulate the economy. The letter was signed by House Majority Leader Rep. John Boehner (R-Ohio), Rep. Eric Cantor (R-Va.), Sen. Jon Kyl (R-Iowa), and Sen. Mitch McConnell (R-Ky.) "It is not clear that the recent round of quantitative easing undertaken by the Federal Reserve has facilitated economic growth or reduced the unemployment rate," they wrote. "To the contrary, there has been significant concern expressed by Federal Reserve board members, academics, business leaders, members of Congress and the public," according to the lawmakers. "Although the goal of quantitative easing was, in part, to stabilize the price level against deflationary fears, the Federal Reserve's actions have likely led to more fluctuations and uncertainty in our already weak economy." The legislators warned additional Fed action could produce more undesired outcomes. "Such steps may erode the already weakened U.S. dollar or promote more borrowing by overleveraged consumers. To date, we have seen no evidence that further monetary stimulus will create jobs or provide a sustainable path towards economic recovery," they wrote. Write to Kerri Panchuk.