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As Fed meets, Republicans warn against policy move

Washington (Reuters)-the top house republicans on Tuesday the central bank's policy before the fed decided to tell from further "intervention" economic unusual step.
The group said, the policy of the federal reserve has set up a file in the support economic development and promote the employment is invalid.
The chairman of the federal reserve in the letter says, "the group, including republican in congress before the two," is not clear, the latest round of quantitative loose the federal reserve moved to promote economic growth or reduce unemployment seats bernanke.
It is a rare directly from Capitol hill of monetary policy, this should be on the advice of political pressure. The us central bank announced on Wednesday generally expected further steps to maintain long-term interest rates fell to the fuel strong recovery.
The federal reserve said it had received a letter, it is by republican leaders announced, but it has no further comment.
In December of 2008, the central bank reduce interest rates close to zero overnight, and then take the unprecedented step, winning more than three times the purchase assets in the course of $2.9 trillion of assets and liabilities.
Fed officials believe that, although growth remains weak, its unconventional monetary support at least beat a long deflationary period-a potential weakened, in a broad range of prices fell.
But as the policy has become loose, republican senator Ben bernanke dose of another kind of the orthodox policy risk is too big even stuck above 9% unemployment.
The letter said: "we have further intervention, the fed may exacerbate the problem of the current U.S. economy further damage or serious concern,".
Last year, the fed made sharp criticism, for a $60 billion bond buying, they think of the round, and republicans on Capitol hill, for the future of inflation laid a foundation.
In the emerging market leaders also cried foul, he said, the policy of the federal reserve is a weak dollar, lend hull is harm to their economy.
Earlier this year, republicans to stop the President Obama the MIT professor Peter diamond nomination as the board of directors of the central bank. Diamond, Nobel economic prize winner, has said supports the fed's easy monetary policy.
In fact, the federal reserve has become a campaign issue next year's presidential election in advance. Republican competitors and former Massachusetts governor mitt romney said he would not appoint bernanke, and the other to a leading republican candidate, Texas governor perry, the chairman of the federal reserve act called the "rebel".
"If this guy between now and election printing more money, I don't know what I'll do y 'all his victory in, but we treat his beautiful drop in Texas ugly," perry said last month in Iowa supporters.




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