Washington D.C. (November 23, 2010) – Chairman Dennis Kucinich (D-OH) today announced a Domestic Policy Subcommittee hearing to delve into the mechanics, the rationale and the impact of the Federal Reserves' policy known as "quantitative easing".
The hearing will review the Fed's "quantitative easing" policy in light of massive unemployment and the seeming inability of government to invest in infrastructure or to intervene to stop the loss of jobs. In the last three years, the economy has lost more than 7 million jobs. And in the last five months alone, 1.1 million full-time jobs were cut. This means that one out of six Americans who would like a full time job cannot get one.
The Subcommittee hearing will take testimony from expert witnesses who will make recommendations as to new directions to resurrect the American economy, through changes in the role of the Fed, and initiatives which enable the government to invest in infrastructure through job creation.
The hearing will further examine the economic justification for and likely effects of the Federal Reserve's effort to purchase $600 billion of longer-term Treasury securities, known as quantitative easing or "QE2." The hearing will specifically examine the role of monetary policy in the current recession, as well as transparency of Fed operations, and its accountability given its current structure and its mandate to promote maximum employment and stable inflation.
The hearing is entitled "Cruising to Recovery on the QE2?: The Federal Reserve and Monetary Policy." The hearing will be held at 2:00 p.m. on Tuesday, November 30, 2010 in Room 2203 Rayburn House Office Building.