House GOP to Bernanke: No Further Action

Republicans cautioned that an expansion of the Federal Reserve’s existing efforts could deepen the nation’s financial challenges by postponing a necessary reckoning and eventually accelerating the pace of inflation.

U.S._Dollar_Blue_Eagle_SmallRepublicans on the House Financial Services Committee pressed the Federal Reserve chairman, Ben S. Bernanke, to forswear additional actions to stimulate growth, warning that the results would be counterproductive.

Mr. Bernanke avoided any commitments to additional action during two days of Congressional testimony, but he told a Senate committee earlier in the week that the Fed was prepared to act if it concluded that job growth had stalled.

“The truth is, the Federal Reserve cannot rescue Americans from the consequences of failed economic and regulatory policies passed by Congress and signed by the president,” the committee chairman, Representative Spencer Bachus of Alabama, said in his opening statement.

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Source: Binyamin Appelbaum | The New York Times