WASHINGTON (MNI) – House Financial Services Committee Chairman
Barney Frank and House Ways and Means Committee Chairman Sander M. Levin
Wednesday issued the following statement on the quantitative easing
undertaken by the Federal Reserve:
“The U.S. economy remains stuck in a slow recovery that is not
producing the employment growth necessary to reduce our unacceptably
high 9.6 percent unemployment rate. That picture is unlikely to change
until private investment accelerates. The quantitative easing measures
announced by the Federal Reserve Board of Governors last week are
designed to drive down long-term interest rates and thus encourage that
investment. We applaud the Fed’s action and are especially encouraged by
its clear signal that it stands ready to do more.
“Monetary policy alone is insufficient to the task of reducing
unemployment on a rapid timetable. Fiscal policy still has a critical
role to play. While we intend to urge our colleagues to take further
action, it unfortunately appears unlikely that Congress will do so.
“Persistent global imbalances have engendered a savings glut in
some countries and persistent trade deficits in others. Reducing those
imbalances requires that surplus countries increase domestic
consumption. This increased consumption would help on two fronts: It
would encourage exports from countries that, like the U.S., continue to
suffer from unsustainable trade deficits, and it would transform the
overhang in surplus countries into consumption that would be good for
both their workers and ours. We support Secretary Geithner in his
efforts, including at this weekend’s G-20 meetings, to encourage our
trading partners in Europe, Asia, and South America to take these steps.
“The 2008 financial crisis and the ensuing recession have left us
with no choice but to deploy, as aggressively as possible, all of the
tools that we possess.”
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MCU$$$,MGU$$$,MMUFE$]
