Editorial Essay

1099 Words5 Pages
Economic Boost Or Bad Policy? GOP Denounces New Fed Plan Backlash Building Against Central Bank's New $600 Billion Stimulus Program 160 comments By MATTHEW JAFFE Nov.10, 2010 PrintRSS FONT SIZE: SHARE: EmailTwitterFacebook More The Federal Reserve's new $600 billion monetary stimulus plan is designed to spur the country's sluggish economic recovery. But the central bank's program is now encountering a growing backlash both at home and abroad. China and Russia have criticized Fed chairman Ben Bernanke's plan, while prominent Republicans are starting to voice concerns of their own. "I would say that Bernanke is fundamentally wrong, that he is running -- he is fundamentally misreading the economy. This economy lacks confidence in the government. It doesn't lack cash," former House Speaker Newt Gingrich told ABC's George Stephanopoulos Tuesday on "Good Morning America." Under the plan dubbed QE2 -- which stands for quantitative easing -- the Fed will buy $600 billion worth of government bonds in a bid to make loans cheaper and get Americans to spend more. Doing so is designed help the economy and prompt companies to boost hiring. The top Republican on the Senate Banking panel told ABC News that he is "worried" about the Fed's plan. Related Newt Gingrich: Sarah Palin Right on Bernanke 'This Week' Transcript: Paul, Pence and Stockman German Minister: Results of U.S. Stimulus 'Horrendous' "While I share Chairman Bernanke's concern regarding the condition of the economy, I am worried about the risks associated with his actions," said Sen. Richard Shelby of Alabama. "However, Chairman Bernanke would not be in this position had President Obama and the Democrats used their power to enact pro-growth policies. Instead, they have grown government and created the most anti-business regulatory environment our country has ever seen." The comments come on

More about Editorial Essay

Open Document