Republican members of Congress on Wednesday criticized the Federal Reserve's decision to buy $600 billion in bonds in an effort to spur the U.S. economy. In a letter to Bernanke, GOP Congressional leaders said the Fed's second qualitative-easing program, commonly known as QE2, could result in "artificial asset bubbles" and long-term inflation.

The news comes only hours after Fed Chairman Ben Bernanke defended the policy before the Senate Banking Committee. He said the program would encourage business investment and could create as many as 700,000 jobs over two years, the Associated Press reported.

Beyond the Senate, other officials also continue to debate QE2. Nearly two dozen economists, including former John McCain advisor Douglas Holtz-Eakin and ex-Treasury official John Taylor, have criticized Bernanke in advertisements in The New York Times and The Wall Street Journal this week.

Last week, Federal Reserve Governor Kevin Warsh said the government's decision to buy up bonds -- at a time when the dollar is weakening and commodity prices are rising -- could cause longer term inflation. The government may be better off reforming the tax code to spur companies to boost investment, he said.

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Thank God we have people like Ben Bernanke who know what the hell they are doing. President Bush began Stimulus Spending with his Temporary 2003 Tax cut to try to get the economy moving. President George Bush again in May 2008 handed out $500 Income Tax rebates to everyone to try to keep the economy going. In Spet of 2008 President Bush began handing out the $700 Billion in Bailouts to keep the nation afloat. If Government Stimulus spending stops______The USA melts down very rapidly and completely sinks, crashes and burns. Leaving just a pile of ashes and no chance of ever recovering again. Cutting or Reducing spending results in LESS not more of everything. Cutting Federal spending results in LESS Jobs and LESS economic activity not more. Just as surely as cutting your hair results in less hair on you head. Look at California___they cut and they cut their state spending and budget from $127 billion per year down to $87 Billion per year over the past 5 years and the end result is that California has lost more jobs than any other state and California is now sinking faster than any other state. When states and the Federal Government cut back and reduce he number of employees they have___then those laid off college educated former government people with clan driving records and no criminal records will be competeing against YOU for whatever jobs remain.

November 18 2010 at 2:28 AM Report abuse rate up rate down Reply

the 2 trillion spent by government already hasn't done anything; course this all has absolutely nothing to do with the's all about making Goldman Sachs rich.

November 17 2010 at 10:22 PM Report abuse +2 rate up rate down Reply

The Fed needs to be audited and ended..and we need our dollar put back on the gold standard to stop the printing and diluting of our dollar!

November 17 2010 at 7:14 PM Report abuse +4 rate up rate down Reply
1 reply to scottee's comment

With obamanomics it may be to late!

November 17 2010 at 7:26 PM Report abuse +1 rate up rate down Reply