Michele Bachmann - Quantitative Easing
Summary
Congresswoman Bachmann has not been vocal on quantitative easing policies. However, prior to the QE2 announcement, Congresswoman Bachmann sent a letter to Federal Reserve Chairman Bernanke inviting him to appear before the House Financial Services Committee prior to initiation of the second round. She stated that the enactment of the second round would create further uncertainty in markets.
Second Round of Quantitative Easing
In October of 2010, Congresswoman Bachmann issued a press statement in response to the second round of quantitative easing.
Bachmann Skeptical about Bernanke’s Second Round of Quantitative Easing
Letter to Chairman Bernanke on Quantitative Easing
Washington, Oct 15, 2010 -
This week, Congresswoman Michele Bachmann (MN-6), member of the House Financial Services Committee, sent a letter to Federal Reserve Chairman Ben Bernanke prior to his highly anticipated remarks regarding another possible round of quantitative easing.
In the letter, Bachmann requests Chairman Bernanke to speak with the House Financial Services Committee before taking any action to further a second round of quantitative easing which could serve as a catalyst for inflationary pressure.
Here is an excerpt of Bachmann’s concerns:
“A second round of quantitative easing only represents a material solution to an immaterial problem – a problem that can only be resolved by taking action to reduce a climate of uncertainty.
“Moreover, I am concerned that a second round of quantitative easing will further aggravate market participants’ uncertainty about near-term economic conditions. There can be little doubt that a second round of quantitative easing would represent a near-emergency intervention by the Federal Reserve and a signal of duress about the future of our economy. In addition, quantitative easing and the concomitant ex nihilo creation of money will undoubtedly impact the inflation rate. Unsettlingly, it remains to be seen where inflation would settle after the proposed implementation of a second quantitative easing.
“Perhaps the largest uncertainty regarding another round of quantitative easing surrounds the ability of the endeavor to succeed or achieve stated policy goals.”
Bachmann looks forward to learning if Chairman Bernanke will accept her invitation to appear before Congress.
Sponsored and Cosponsored Legislation
This representative has not been identified as sponsoring or cosponsoring significant legislation related to this title.