After a Strong Jobs Report, Fed Should Begin to Normalize Policy Now
“The way to achieve non-inflationary prosperity for all Americans is for the new Congress to pass pro-growth legislation and for the Fed to maintain a sound dollar,” Brady says.
Rep. Kevin Brady, chairman of the Congressional Joint Economic Committee (JEC) commented on today’s report from the Bureau of Labor Statistics (BLS) that the economy added 321,000 nonfarm payroll jobs (314,000 in the private sector) during November and that the unemployment rate remained unchanged at 5.8%.
“This month’s report is good news for American workers,” Brady said. “As the job market improves, the Federal Reserve must begin to normalize monetary policy.”
“In the 1970s, Washington policymakers relied on the Fed’s easy money to compensate for anti-growth tax and regulatory policies. The result was double-digit inflation,” Brady said.
“The newly elected Congress should concentrate on passing pro-growth legislation when it convenes in January to sustain strong job growth. And the Fed should concentrate on maintaining a sound dollar. That’s the way to achieve non-inflationary prosperity for all Americans,” Brady concluded.
