The Fed to continue bond-buying program, Ron Paul responds ‘I am disappointed, but not surprised’
The Federal Open Market Committee (FOMC) met for a two-day meeting in March, and according to the Fed press statement, little has changed.
They report economic activity growth as moderate, labor markets have improved and a strengthening of the housing sector.
“The Committee expects that, with appropriate policy accommodation, economic growth will proceed at a moderate pace and the unemployment rate will gradually decline toward levels the Committee judges consistent with its dual mandate.”
They expect inflation to continue to stay below two percent and to keep that going, they will continue the bond-buying program.
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.
Former Texas Congressman, Fed critic and Campaign for Liberty Chairman Ron Paul made the following statement concerning the Federal Open Market Committee’s decision to continue its bond-buying program:
Photo/US Congress
“I am disappointed, but not surprised, that the Federal Reserve decided to hand the American people more of the same failed policies that caused and then perpetuated our current financial crisis. Chairman Bernanke may believe there is no inflation, but try telling that to seniors who are on a fixed income, students trying to save for college, and the millions of other Americans who are contending daily with rising prices.
“If the problem was the Fed not printing enough, and Congress not spending enough, why have the trillions of dollars in monetary stimulus only benefited big banks and corporations? Why are Americans paying higher prices each week at the grocery store?
“The truth is the Federal Reserve’s bond-buying program only benefits big bankers and politicians while hurting poor and middle class Americans. We can never hope to be a prosperous nation again until we realize the printing press is not the solution to our problems.
“The American people deserve a full accounting of what the Federal Reserve has been doing to our economy and our money, which is why Campaign for Liberty will continue to lead the fight to Audit the Fed.”
Eleven of the Fed governors voted for the FOMC monetary policy action with one dissenter.
Voting against the action was Esther L. George, President of the Kansas City Fed, who was concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long-term inflation expectations.
[…] Texas Congressman and staunch critic of the policies of the Federal Reserve, Ron Paul, previously criticized the news that came out of the Federal Open Market Committee (FOMC) meeting la…saying he was disappointed, but not […]