–Senate Banking Chief Johnson Praises Fed For ‘Aggressive Action’
–House Fin Services Chief Baucus Says Fed Can’t ‘Rescue’ Admin
–GOP’s Sen Corker: Bernanke Is Starting To Do ‘Serious Damage’ To Fed
–House Minority Leader Pelosi Praises Fed Effort To ‘Bolster’ Growth

By John Shaw

WASHINGTON (MNI) – The Federal Reserve’s decision Thursday to
expand its quantitative easing generated sharply partisan reactions on
Capitol Hill, with Democrats praising the Fed for taking creative steps
to boost a struggling economy while Republicans slammed the central bank
for overreaching.

The sharply partisan reaction to the Fed announcement was
exemplified by the different comments from the two chairmen of Congress’
banking committees.

Senate Banking Committee Chairman Tim Johnson, a Democrat, praised
the Fed, saying it should use “every tool in the toolbox to create
jobs.”

“So it is encouraging to see the Fed continue to take aggressive
action to stabilize the overall economy,” Johnson said in a statement.

House Financial Services Committee Chairman Spencer Bachus, a
Republican, chided the Fed. He said the central bank “cannot rescue the
administration from the consequences of failed economic and regulatory
policies.”

In a statement, Bachus called the Fed action as a “scathing
indictment” of President Obama’s economic policies.

Sen. Bob Corker, a senior Republican member of the Senate Banking
Committee, issued another a hard shot at Federal Reserve Board Chairman
Ben Bernanke.

“I am disappointed in the Federal Reserve’s actions today and truly
believe Chairman Bernanke is beginning to do serious damage to the Fed
as an institution,” he said in a statement.

Corker said Fed’s actions “will politicize the Fed and add
substantially to its balance sheet, but it will not help our economy’s
long-term growth prospects.”

Earlier in the week, Corker urged Bernanke to “show humility and
make clear that there are limits to what monetary policy can achieve.”

For months, Corker has joined a number of Republican lawmakers in
pressing the Fed not to do any more to stimulate the economy. They argue
that looser monetary policy takes the pressure off Congress to act on
fiscal policy.

At a Thursday briefing, House Minority Leader Nancy Pelosi praised
the “strong vote” by the FOMC to commence another round of monetary
stimulus.

Pelosi said the Fed clearly saw a need to “bolster the economy,”
and said that she hopes its policies have a “positive” effect.

** MNI Washington Bureau: (202) 371-2121 **

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