Romney: Federal Reserve Should not Enact New Measures to Boost the Economy

Pat Garofalo
Think Progress / News Report
Published: Monday 6 August 2012
The Fed itself announced last week that, though it “anticipates that the unemployment rate will decline only slowly toward levels that it judges to be consistent with its dual mandate,” no new action will be taken.
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During an interview with CNN’s Gloria Borger yesterday, Mitt Romney said that the Federal Reserve should not enact a new round of stimulus aimed at boosting the still-sluggish economy, even as he admitted that the Fed’s first round of so-called “quantitative easing” did some good:

BORGER: Should — should the Fed intervene at some point?

ROMNEY: Well, I think the Fed’s first action, in quantitative easing, was effective to a certain degree. But I believe that the QE2, the second round of easing — I don’t think it had the impact that they were hoping for. And I’m sure the Fed is watching, will try and encourage the economy. But I don’t think a massive new QE3 is going to help this economy.

The Fed itself announced last week that, though it “anticipates that the unemployment rate will decline only slowly toward levels that it judges to be consistent with its dual mandate,” no new action will be taken. This is consistent with the Fed’s actions over the last few years, when it has tolerated high unemployment, even as inflation, the other half of the Fed’s mandate, has stayed low:

 

 

Federal Reserve Chairman Ben Bernanke said in a speech today that, “even though some key aggregate metrics — including consumer spending, disposable income, household net worth, and debt service payments–have moved in the direction of recovery, it is clear that many individuals and households continue to struggle with difficult economic and financial conditions.” But still, the Fed is standing pat.

As ThinkProgress’ Jeff Spross detailed, Republicans have warned that the Fed’s actions would spark inflation, which has never actually materialized. Romney now seems to be jumping on board with a similar message, saying that the Fed should not take all available steps to bring down the jobless rate.



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ABOUT Pat Garofalo

Pat Garofalo is Economic Policy Editor for ThinkProgress.org at the Center for American Progress Action Fund. Pat’s work has also appeared in The Nation, U.S. News & World Report, The Guardian, the Washington Examiner, and In These Times. He has been a guest on MSNBC and Al-Jazeera television, as well as many radio shows. Pat graduated from Brandeis University, where he was the editor-in-chief of The Brandeis Hoot, Brandeis’ community newspaper, and worked for the International Center for Ethics, Justice, and Public Life.

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8 comments on "Romney: Federal Reserve Should not Enact New Measures to Boost the Economy"

Rich Nau

August 07, 2012 1:09am

IF the goal is to recreate the financial conditions of the Depression, tighten credit and balance the budget before we get a recovery. Once deflation starts, the rest is easy.

pitch1934

August 06, 2012 5:26pm

Has anyone noticed that it is the wealthy who don't want to Fed to do anything?

JOHN DEE

August 06, 2012 10:44am

SEE www.monetary.org

Ger320

August 06, 2012 10:31am

It is obvious---Rmoney and the pugs will sacrifice the jobless and the country to try to gain political advantage and defeat Obama.

Ger320

August 06, 2012 10:27am

I post the following after all articles like the above--

The USA and the world's banking and corporate malfeasance (including vulture capitalism), the income/wealth gap and social ills will never be solved without total sovereign government banking being established. The IMF turned over to the UN, for setting currency exchange rates only.  Privately owned central banks must be replaced by government owned national banks. It must be done soon--watch:

http://www.youtube.com/watch?v=swkq2E8mswI&feature=youtube_gdata_player

Ronni85

August 06, 2012 9:45am

If the GOP is not defeated in this election, this country and this planet are doomed. The GOP will leave no stone unturned to destroy the environment, increase offshore drilling, allow fracking - which destroys the groundwater, and makes people sick from the chemicals, gives the go-ahead for the Keystone Pipeline - plus will allow tar sand type oil "mining" here. Coal will be in its heyday - spewing all kinds of sicknesses, plus more mountaintops to be taken off- destroying creeks, streams and rivers as it goes. Yes, the GOP will have a field day destroying all that is good, just for the almighty dollar.

Nymonlux

August 06, 2012 9:32am

Does anyone pay attention to the past decade? Does anyone remember the closing of factories by our manufacturing corporations. This was done DURING the great tax reduction by Bush. New plants were built by them in China, India etc. The workers-our Middle Class- were out of a job, unions closed shops. Taxes were not paid- no income-, social security and medicare followed. There were bankcrupties galore. When there was recovery, there were no more factories thus our huge unemployment. And the GOP has the GALL to criticize our President.
PEOPLE REFRESH YOUR MEMORY. And consider who has been making huge income and still is doing so. We talk about Dollars, they talk BILLIONS.
TRY TO FIND ONE PRODUCT MADE IN THE USA.

fairandbalanced100

August 06, 2012 9:02am

Romney & most republicans are against boosting the economy .
We need politicians that do want to boost the economy & create jobs
like Obama .