Frank accuses Republican lawmakers of joining 'broad attack by foreign central banks' on US economic policy
Representative Barney Frank issued a scathing statement today accusing Republican lawmakers of joining foreign leaders in "a broad attack" on the US Federal Reserve's plan to buy $600 billion in bonds in an effort to jumpstart the economy.
Senate Minority Leader Mitch McConnell, incoming House Speaker John Boehner, Senator John Kyl and Representative Eric Cantor sent a letter last week to Fed chief Ben Bernanke expressing concerns that the infusion of cash would cause inflation and possibly generate an asset bubble that could do more damage to the economy.
Frank, chair of the House Financial Services Committee, said in his statement today that “Debating American economic policy is one thing; joining in a broad attack by foreign central banks, who insist that America somehow must subordinate our own legitimate economic needs to their currency requirements, is quite another."
Republican economists sent a separate letter to Bernanke last week criticizing the Federal Reserve bond-buying plan. Foreign leaders from China, Germany and Brazil have also signaled their displeasure.
“I was not surprised at the extreme hypocrisy of the Central Bank of China insisting that America – apparently alone among nations – has an obligation to subordinate its own legitimate economic needs to international currency movements, nor was I surprised that other central banks, including Germany’s, joined China," Frank said in his statement.
“What did disappoint me was to see conservative economists, high-ranking officials of previous Republican administrations, and Republican Congressional leaders share the attack by these foreign banks not simply on the substance of the Federal Reserve’s proposal, but on the very notion that America has a right to give a primary focus to our own economic need for growth at this time."
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Glen Johnson is Politics Editor at boston.com and lead blogger for "Political Intelligence." He moved to Massachusetts in the fourth grade, and has covered local, state, and national politics for over 25 years. E-mail him at firstname.lastname@example.org. Follow him on Twitter @globeglen.