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Ron Paul to focus on jobs in first Monetary Policy Subcommittee hearing on Federal reserve
Chairman Paul will open a hearing on On Wednesday, February 9th to examine the impact of Federal Reserve policies on job creation and the unemployment rate.
In an an article from February 2nd on the Committee of Financial Services website, Congressman Paul spoke on the critical necessity to address the unemployment problem in America.
Subcommittee Chairman Paul said, “I’m very pleased to hold our first subcommittee hearing in the new Congress on a topic that could not be more critical, namely unemployment. Despite enormous amounts of monetary and credit expansion by the Federal Reserve in recent years, the nation’s unemployment picture remains bleak. While many focus on the impact of fiscal policies on employment, the effect of monetary policy often goes unexamined. In my view we are now experiencing the bust that inevitably results from the misallocation of capital and human resources in a period of artificially cheap credit. It is important to understand the Federal Reserve’s role in creating today’s unemployment crisis, while also highlighting that high unemployment and low economic growth can persist even in the face of tremendous monetary inflation.”
The focus of the hearing will deal with the Fed's infusion of trillions of dollars into the economy over the past three years, and the failure of that money to accomplish its intended goals. The Federal Reserve has two primary mandates in its charter amongst a number of smaller ones. These are to curb inflation, and to monitor the state of the economy through monetary policy. That second mandate involves policy that helps deal with unemployment.
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