Palin ‘Deeply Concerned’ About Fed’s Decision To Purchase Government Debt
November 15, 2010 by Special To Personal Liberty
In response to the Federal Reserve's announcement that it will purchase up to $900 billion in Treasury bonds by June 2011 in an effort to stimulate the economy, Sarah Palin has voiced her concerns.
According to The Huffington Post, the former Alaska governor and vice presidential candidate is urging Federal Reserve Chairman Ben Bernanke to "cease and desist" the central bank's attempt to jumpstart the economy in that way. In prepared remarks that Palin was set to deliver in front of a trade association in Phoenix, she said she is "deeply concerned" with the plan of "printing [money] out of thin air."
The news provider reports that Palin's statements will likely appeal to Tea Party supporters who are suspicious of the Federal Reserve, which creates the money that goes into circulation in the United States.
Members of the Fed are divided about the commitment to buy up to $900 billion in government debt. One side believes the purchase could lead to asset bubbles and runaway inflation, while supporters claim that there is too much of a risk of another recession to not act.
According to Bloomberg, Richard Fisher, president of the Federal Reserve Bank of Dallas, said that the large-scale Treasury purchases are "the wrong medicine for the ailment from which our economy is suffering." During a speech on Nov. 8, Fisher projected that the central bank's decision could ultimately weaken the dollar.