House Financial Services Committee Chairman Barney Frank (D-MA) and House Ways and Means Committee Chairman Sander M. Levin (D-MI) issued the following statement today on the quantitative easing undertaken by the Federal Reserve.

“The U.S. economy remains stuck in a slow recovery that is not producing the employment growth necessary to reduce our unacceptably high 9.6 percent unemployment rate. That picture is unlikely to change until private investment accelerates. The quantitative easing measures announced by the Federal Reserve Board of Governors last week are designed to drive down long-term interest rates and thus encourage that investment. We applaud the Fed’s action and are especially encouraged by its clear signal that it stands ready to do more.

“Monetary policy alone is insufficient to the task of reducing unemployment on a rapid timetable. Fiscal policy still has a critical role to play. While we intend to urge our colleagues to take further action, it unfortunately appears unlikely that Congress will do so.

“Persistent global imbalances have engendered a savings glut in some countries and persistent trade deficits in others. Reducing those imbalances requires that surplus countries increase domestic consumption. This increased consumption would help on two fronts: It would encourage exports from countries that, like the U.S., continue to suffer from unsustainable trade deficits, and it would transform the overhang in surplus countries into consumption that would be good for both their workers and ours. We support Secretary Geithner in his efforts, including at this weekend’s G-20 meetings, to encourage our trading partners in Europe, Asia, and South America to take these steps.

“The 2008 financial crisis and the ensuing recession have left us with no choice but to deploy, as aggressively as possible, all of the tools that we possess.”

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