Republicans oppose lowering interest rates

Fed Chairman Ben Bernanke (AP Photo/Manuel Balce Ceneta, File)

Congressional Republicans don’t like the idea of lowering interest rates.

They claim that if the Federal Reserve takes steps to boost the economy by shifting money from short-term securities to long-term holdings — a move that would almost certainly lower rates on mortgages and consumer and business loans — it would increase the risk of inflation.

So four high-ranking Republicans sent Fed Chairman a letter this week telling him to scrap the plan.

But Bernanke, who doesn’t really answer to Congress, is expected to move ahead Wednesday with plans to unveil “Operation Twist,” a plan based on actions taken a half-century ago when the Fed fiddled with long-term rates.

Bernanke’s plan would shift money out of the Fed’s $1.7 trillion portfolio out of short-term certificates.

4 Responses to "Republicans oppose lowering interest rates"

  1. griff  September 21, 2011 at 8:55 am

    No, Bernanke does not answer to the Congress, therefore does not answer to the People.

    Not the way it was intended…

    End the Fed.

  2. Alisa  September 21, 2011 at 1:15 pm

    If there’s any chance that the Fed might help the economy, the Republicans will oppose it. It all comes down to the McConnell Doctrine — “Obama Must Not Get A Second Term, Even If We Have To Destroy the U.S.A. In The Process.”

    • griff  September 22, 2011 at 11:47 am

      The Fed has done a wonderful job so far, yes?

  3. SDRSr  September 21, 2011 at 1:23 pm

    Watch Republicans soil themselves on this one, LOL.

    Ummmm, Congress set up the Fed in 1913 ( http://en.wikipedia.org/wiki/Federal_Reserve_Act ), just the way it is. This was done to insure the Fed and the post of Fed Chairman remained non-political.

    Now, the funny part of this is that what became the Fed was recommended in a report to Congress in 1912 by a commission formed in 1908. The “Aldrich–Vreeland Act” ( http://en.wikipedia.org/wiki/Aldrich-Vreeland_Act ) was authored by the chairman of the Commission, Senator Nelson W. Aldrich ( http://en.wikipedia.org/wiki/Nelson_W._Aldrich ) of Rhode Island.

    Now the good part, Senator Aldrich was a Republican. At that time in the last century the Republican Party was the Progressive Party, the Liberal Party of the time. So, the Emperor has no cloths, lol

    So all this uproar about the Fed by the Republicans … well the chickens have come home to roost.

    HAHAHAHAHAHAHAHAHAH!

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