The comment of Fed Chairman Ben Bernanke, about the unemployment crisis perhaps lasting another four-or-five-years is troubling to First District Congressman Paul Ryan.
Ryan says there is a potential Bernanke is right but he doesn’t agree with the Fed Chairman’s proposal, “His quantitative reasoning which is basically have the Federal Reserve print more money is his attempt to make up for the fact that we have really bad fiscal policy.”
The Janesville Republican says there’s still way too much spending and borrowing, plus the administration is pushing higher taxes. Ryan says all the money pumped into the economy failed to achieve the goal of lowering interest rates, noting 30-year fixed mortgage numbers are about as low as they’ve ever been. He says the plan could lead to less confidence in the dollar and higher inflation down the road.
On the tax cut issue, Congressman Ryan says what appears to be a two year deal not to raise taxes, by eliminating the Bush-era cuts, is likely to be approved this week. In exchange it appears Republicans will grant Democrats request to extend jobless benefits.