But "critics" have happily taken the floor to question what the Fed is doing. Here's an example:
“The Fed is trying to achieve too much,” said Mickey D. Levy, chief economist at Bank of America. “They want to stimulate demand, but there are a lot of nonmonetary factors that are inhibiting the economy, including distressed mortgages and foreclosures, the need for households to save, and a whole array of factors deterring businesses from hiring.”There are plenty of others.
What I've never seen mentioned, though, is this: why get on Bernanke's case when he is getting absolutely zero help from the elected Democrat politicians (including the President) who are currently steering the US economy in the direction of socialism and ignoring job creation altogether? Used to be that the Federal Reserve could count on a little help and a little support from the US government for its efforts to revive the economy in tough times. In this case, it would seem that the Congress and the Administration are doing precisely the opposite.
As a result, businesses are sitting on enormous piles of cash, in the trillions of $$, both here and abroad. And they're not going to bloody well put it to work inventing new things and hiring people to build them if they can't get any clarity whatsoever as to what the Feds plan to do to them over the next 4-8 years.
So, with the politicians effectively forcing American business to go on a massive capital sitdown strike, the only weapon remaining to the Fed is--inflation! And so my question is to the pundits, and in fact to many economic conservatives, is this: What the hell else is the Fed supposed to do when they're getting no help? Just sit there and watch the economy tank?
Think about it. Can you come up with any other solution with the current crowd in power?