SmashMouth

Sen. David Vitter, R-La., is teaming up with Sen. Bob Corker R-Tenn., to limit the Federal Reserve to its traditional role of keeping inflation in check. "I've long argued that the Fed should just focus on inflation," Vitter said Monday after he joined Corker in introducing their bill to reign in the Fed.


"With endless stimulus-type initiatives coming out of the Fed and the money printing press never ending - all under the banner of helping boost employment - the Federal Reserve should get back to its original goal," Vitter said.

At issue is the Federal Reserve's continuous efforts, since the 2008 financial crisis, to encourage economic growth. It has had a policy of record low interest rates, and when that failed to jumpstart the economy, it has been purchasing bonds in an effort to improve liquidity and encourage banks to lend more money.

Boston Federal Reserve President Eric Rosengren said the policy has helped spur the sales of homes, cars, and other items, and without that intervention, economic growth would have been slower than it is now.

But Corker said the Federal Reserve has gone too far.





"Providing the Fed with a clear and explicit focus on keeping inflation low will serve America better than the broad, bipolar mandate it has today," Corker said. "The dual mandate blurs the line between fiscal and monetary policy and allows Congress to shirk its responsibility to enact sound budgets and policies that produce economic growth. The best way to achieve full employment in the long-run is to provide markets certainty that long-term price stability will be maintained."

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Danno

I'm no conspiracy theorist at all but Mr Vitter may wake up with a horse head next to him.

TheOak

I thought he already did.... Would explain all of the escorts.