The Progressive


A project of Common Dreams

For Immediate Release
Contact: Sam Husseini, (202) 347-0020; or David Zupan, (541) 484-9167

Federal Reserve and Unemployment


Mark Weisbrot
is co-director of the Center for Economic and Policy Research.
He said today: "While America is suffering through its worst spell of
unemployment since the Great Depression, some Republicans in Congress
actually want to change the law so the Fed can't legally pursue full
employment as it is supposed to do now. This is pretty crazy stuff.
Meanwhile, there is backlash against the Fed for actually doing
something right this time -- 'quantitative easing' -- and fears of
inflation when it is actually too low. The Fed's latest move can
actually reduce the interest burden of the country's public debt and
makes it easier for the Congress to do what it should have done two
years ago: enact a stimulus that is big enough to actually pull the
economy out of its current slump and put people back to work. It's not
enough, but at least it's a step in the right direction."

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