Why the GOP Doesn't Want The Fed to Help

Chairman of the Federal Reserve Ben Bernanke announced a new round of monetary stimulus by the Fed to do something about persistently high unemployment. This new plan will pump $85 billion into the economy by purchasing mortgage-backed securities and trading short-term bonds for long-term bonds with the banks. Basically - that means pumping more money into the economy. The Fed also took a rather bold step today in saying this new stimulus program is open-ended - and that the Fed will continue these measures if unemployment doesn't start falling faster. Now - there are legitimate criticisms against what the Fed is doing - primarily that it won't have the sort of stimulative affect on the economy that's needed since banks still won't lend to small businesses. But really - there's nothing else the Fed can do. Remember - the Fed was created with a dual mandate. One, to keep inflation under control. And two, to keep unemployment low. And since Republicans in Congress refuse to do anything to address high unemployment in America - blocking stimulus after stimulus - then the Fed is the only institution left that can at least make a dent in the jobless number. And that's what it's trying to do. And it's very telling that Republicans are criticizing the Feds efforts today - since as we all know by now - their banking on a bad economy to win big in November.

Video Duration: 
82

Currently Chatting

Community Archive

Why the Web of Life is Dying...

Could you survive with just half of your organs? Think about it. What if you had just half your brain, one kidney, half of your heart, one lung, half a liver and only half of your skin? It would be pretty hard to survive right? Sure, you could survive losing just one kidney or half of your liver, but at some point, losing pieces from all of your organs would be too much and you would die.