While I don’t necessarily agree with any or all parts of the following statement, released yesterday, from Financial Services Committee Chairman Jeb Hensarling (R-TX), I do think that it is notable, and as such should be recognized.
Here is the statement, which is in response to continued monetary stimulus as announced in yesterday’s Federal Reserve FOMC Statement :
Like a patient who has been administered too many antibiotics, the economy is less and less responsive to the Fed’s continued monetary stimulus. America is nearly five years into the Fed’s historically unprecedented interventionist policies and there is very little gain to show for it. 12 million Americans remain unemployed — a number roughly equal to the entire population of Ohio. Many others are so discouraged they have given up looking for work, and our so-called recovery is the weakest in modern times.
It’s time for the Fed to acknowledge the simple truth that the challenges facing our economy today cannot be solved by more monetary stimulus. If the Fed wants to help the economy, it needs to adopt a more predictable, rules-based policy that aims for long-term price stability. That is the policy that will promote long-term economic growth.
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The Special Note summarizes my overall thoughts about our economic situation
SPX at 1588.41 as this post is written