Political Quotes

“Madam President, Dr. Yellen's nomination is an opportunity to review the unprecedented actions of the Federal Reserve over the last several years. Five years ago, the Fed began using unconventional monetary policy tools, aggressively pursuing quantitative easing and holding interest rates near or at zero percent. The Fed now has a balance sheet of $4 trillion, a level roughly equal to one-quarter of annual U.S. economic output. The Fed has accumulated this balance sheet by buying Treasuries and mortgage-backed securities at a pace of up to $85 billion each month. I have been a long-time critic of the Fed's quantitative easing purchases. Several noted economists have called into question the benefits of these purchases, suggesting they may be outweighed by risks. These policies, specifically purchasing billions in long-term bonds, can distort pricing in markets and lead to excessive risk taking, creating ``bubble-like'' conditions according to experts like Larry Fink at BlackRock. Bill Gross of PIMCO stated that ``all asset prices, whether it be bonds, stocks, or alternative assets are basically mispriced, artificially elevated'' as a result of the Fed's actions. I am concerned that the markets have become exceedingly reliant on quantitative easing, circumventing pure economic fundamentals in favor of government-stimulated economy. Although a reduction in the pace of asset purchases will finally begin this month, in her nomination hearing Dr.…”