Washington, Dc – February 12, 2010 – (RealEstateRama) — This week, Federal Reserve Chairman Bernanke released plans to reduce its emergency lending programs used during the economic crisis. Bernanke detailed actions the Fed may take to reduce its $2.2 trillion balance sheet, including a commitment to purchase up to $1.25 trillion in mortgage-backed securities. The actions from the Fed have been questionable due to lack of transparency and use of emergency powers, outside of Congressional oversight.
“The economy continues to require the support of accommodative monetary policies. However, we have been working to ensure that we have the tools to reverse, at the appropriate time, the currently very high degree of monetary stimulus. We have full confidence that, when the time comes, we will be ready to do so,” Bernanke said.
Congressman Castle was encouraged by Bernanke’s remarks. “Many of us have expressed serious concerns about the powers exercised by the Federal Reserve during the recession,” said Castle. He continued, “Chairman Bernanke announced today that he is committed to winding down the extraordinary programs it employed since the start of the economic downturn in a way that protects against the dangers of inflation. I look forward to the enactment of these steps and specifically would like to see fulfillment of a provision I authored to allow the Government Accountability Office to thoroughly review the emergency actions taken at the Federal Reserve and have a fully transparent process moving forward.”
Kate Dickens 202-225-4165