Waters Statement on Federal Reserve Announcement
Congresswoman Maxine Waters, Ranking Member of the Committee on Financial Services, released the following statement upon the announcement of the continuation of the Federal Reserve’s asset purchase program known as “quantitative easing.”
“I am a strong supporter of the actions that Chairman Ben Bernanke and members of the Federal Open Market Committee (FMOC) have taken over the last several years in the face of the most serious financial crisis this country has faced since the Great Depression. The drop in interest rates triggered by the Fed’s quantitative easing program has precipitated improvements in the housing sector and, by extension, the larger economy. We have seen the housing recovery accompanied by a rise in home prices, fewer borrowers underwater and an expanded number of homeowners eligible to refinance.
I commend the Federal Reserve for continuing its quantitative easing policy until there is more evidence that economic progress will be sustained. With more than 11 million Americans still searching for work, our tenuous recovery has a long way to go. Maintaining quantitative easing will ensure a stronger economic recovery by bolstering mortgage markets, keeping long-term interest rates low and improving other financial indicators. I am carefully monitoring the situation and I continue to believe that with inflation well-below its 2 percent target, the Federal Reserve should give the employment aspect of its dual-mandate the critical attention it deserves.
Concurrent to the Fed’s stimulus, we in Congress must avoid another self-inflicted wound. The sequester is leading to job cuts for teachers, firefighters, police officers and first responders, while harming critical investments in education, research, health care and services for our most vulnerable populations. Irresponsible attempts to hijack the debt ceiling debate or cause a government shutdown would be devastating for our fledgling economic recovery and a nation that’s been through enough.”