Chairman of the House Financial Services Committee Jeb Hensarling announced on Wednesday that Federal Reserve Chairman Ben Bernanke will testify before the committee on Feb. 27 to deliver the Monetary Policy Report to Congress.
“The Federal Reserve’s concerns about the economy are well founded,” Hensarling said, according to 4-Traders. “Our nation continues to struggle with weak economic growth and chronically high unemployment that leaves millions of Americans lying awake at night pondering insecure financial futures for themselves and their families. However, our economy is not suffering from a problem that monetary policy can solve. Our economy is stressed because of misguided Washington fiscal policies that tax more, borrow more, regulate more and spend more. The Fed’s high-risk strategy of accommodative monetary policy produces little or no marginal benefit but, in the long run, could result in high inflation or high interest rates that send us back into recession. It’s time to face the reality that we have reached the limits to anything monetary policy can do to help the economy.”
The Fed is required to provide reports on monetary policy and the state of the economy to the Financial Services Committee twice per year.
Bernanke will also testify before the Senate Banking Committee next week and is expected to cover a broad range of issues, including the impact that the sequester, a series of automatic spending cuts scheduled to take effect March 1, could have on the U.S. economy, WealthManagement.com reports.