Tags: Money | criticism | yellen | federal reserve | chief

5 Harshest Criticisms of Yellen's Term as Federal Reserve Chief So Far

By    |   Thursday, 09 July 2015 05:38 PM

Janet Yellen took over as Federal Reserve chairwoman in January 2014 and has faced criticism for the Fed’s monetary policies, which have been attacked heavily since the economic breakdown of 2008.

Here are five criticisms hurled at Yellen since her term began:

Watch Now: Steve Forbes Slams the Fed in This Video

1. U.S. Rep. Bill Huizenga, a Michigan Republican, co-sponsored a bill in 2014 to make the Fed more transparent. He and other Republicans said the Fed was not taking a rules-based approach to reporting on its monetary policy. During a July 2014 hearing before the House Financial Services Committee, Yellen defended the policy the Fed was following and said such an approach would have made the economy worse following the 2008 economic downturn. Committee Chairman Jeb Hensarling of Texas also asked about discussions between Yellen and the U.S. Treasury secretary being made public. Yellen said these were private conversations, but agreements from the discussions would be made public.

2. U.S. Rep. Scott Garrett of New Jersey told Yellen he was concerned about bailouts for financial institutions at taxpayers’ expense, which occurred because of the financial crisis. He asked the Federal Reserve chairwoman if this would occur again in the future, but Yellen said it would only happen in extreme situations.

3. Yellen was also criticized during the July 2014 hearing for continuation of repurchase agreements with banks for reserves to maintain economic growth. The Fed’s policy included purchasing Treasury bonds to help continue with bank lending. Critics charge that situation could be expanding the Fed’s authority too far.

4. Angered by the continuation
of an unhealthy economy and the Fed’s monetary policy that included pumping more money into the economy for banking institutions, many critics are demanding an audit of the Fed to find out where the money is going. Sen. Rand Paul, a Kentucky Republican and candidate for the presidency in 2016, introduced legislation to audit the Federal Reserve, which is exempt from such measures.

5. Investment strategist Peter Schiff has criticized Yellen for continuing the policies of predecessor Ben Bernanke. While the Fed had hinted at finally raising interest rates, Schiff said he believes it will continue to practice quantitative easing in which the Fed purchases more mortgage-backed securities and Treasury bonds because the economy is still on shaky ground. Higher interest rates would affect the stock market, and “I don’t think Janet Yellen wants the stock market to go down,” he said on CNBC.

New Threat: Glaziev Directive Could Instantly 'Reset' the Value of the Dollar, Destroy Wealth (See Proof)

© 2020 Newsmax. All rights reserved.


   
1Like our page
2Share
Money-Wire
Janet Yellen took over as Federal Reserve chairwoman in January 2014 and has faced criticism for the Fed's monetary policies, which have been attacked heavily since the economic breakdown of 2008.
criticism, yellen, federal reserve, chief
426
2015-38-09
Thursday, 09 July 2015 05:38 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved