Republican Mitt Romney’s campaign today called the Federal Reserve’s announcement of another round of “quantitative easing” a measure of President Barack Obama’s failure with the economy.
“The Federal Reserve’s announcement of a third round of quantitative easing is further confirmation that President Obama’s policies have not worked,” Romney campaign policy director Lanhee Chen said in a statement issued this afternoon.
“After four years of stagnant growth, falling incomes, rising costs, and persistently high unemployment, the American economy doesn’t need more artificial and ineffective measures,” Chen said. “We should be creating wealth, not printing dollars.”
The Romney campaign maintains that his own formula for reviving the economy — cutting taxes, reducing government regulation, spurring energy development and repealing the president’s health-care law — will spur job growth after three and a half years of unemployment running at over 8 percent.
“As president, Mitt Romney will enact bold, pro-growth policies that lead to robust job creation, higher take-home pay and a true economic recovery,” Lanhee’s statement said.
The Federal Open Market Committee today said that if “the labor market does not improve substantially,” it will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases “and employ its other policy tools as appropriate.”
The FOMC said it would probably hold the federal funds rate near zero “at least through mid-2015.” Since January, the Fed had said the rate was likely to stay low at least through late 2014. The Fed said “a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.”
As Bloomberg’s Joshua Zumbrun reports today, Federal Reserve Chairman Ben Bernanke is enlarging his supply of unconventional tools to attack unemployment stuck above 8 percent since February 2009, a situation he has called a “grave concern.” The decision risks provoking a renewed backlash from Republicans, including presidential nominee Romney, who say Bernanke’s policies threaten to ignite inflation while doing little to spur the economy.