A Wisconsin Congressman is putting the Fed’s fiscal and monetary policies under the microscope. Paul Ryan had a chance to challenge Federal Reserve Chairman Ben Bernanke on the central bank’s recent stimulus effort which includes pumping millions into the economy through purchases of long-term US Treasuries.
During opening statements today at a House Budget Committee hearing, Chairman Ryan is concerned such practices will have negative effects.
“These costs may come in the form of asset bubbles and price pressures. We are already witnessing a sharp rise in a variety of key global commodity and basic material prices, and we know that some producers and manufacturers here in the United States are starting to feel cost pressures as a result,” said the Janesville Republican.
Bernanke denied that the Fed’s loose monetary policies were responsible for rising global inflation. He adds the purchasing of treasury bonds were temporary measures that the Fed had the ability to halt or reverse before inflation spiked.
The hearing is Bernanke’s first appearance before the new Republican-controlled House.