In response to today’s statement from the Federal Open Market Committee, Rep. Kevin Brady (R-TX), Vice Chairman of the Joint Economic Committee, today released the following statement:

“My first reaction was, ‘thank goodness the Fed didn’t start a new program of quantitative easing.’ The economy doesn’t need any more monetary morphine.  They need to focus on preserving the purchasing power of the dollar if they want to help create permanent jobs and economic growth.“

“The Fed’s action underscores what I and leading economists that have testified before the JEC have been saying all along: that the best way to turn around the economy and put those who continue to seek full-time employment back to work is through sustained economic growth and that the best way that the Federal Reserve can contribute to that sustained growth is by keeping prices stable.”

“I remain concerned that the Federal Reserve, in its efforts to combat unemployment, is coming too close to helping launch a new round of inflation. Inflation exacts a cruel price from everyone that earns a paycheck or is on fixed incomes.  More easing by the Fed would risk triggering  a new round what we called ‘stagflation’ in the Carter days: a combination of high inflation and high unemployment.”

“If we want to help the economy and create jobs, the Fed needs to focus on price stability and stop trying to micromanage and manipulate the economy.”

Representative Brady has introduced the Sound Dollar Act which would require the Federal Reserve to focus on preserving the purchasing power of the dollar as the best means of creating jobs and economic growth.  The legislation would give parts of the country other than Wall Street and Washington a greater voice in policy formation and would increase transparency in Federal Reserve operations.