Yellen’s record-low Senate support reflects Fed’s politicization - Providence Business News
Yellen takes over a Fed with a $4.02 trillion balance sheet
bloated by a quantitative easing program, undertaken to pull the nation
out of the deepest recession since the 1930s, that sparked strong
Republican criticism. Crisis-era bailouts of financial firms, including
American International Group Inc., exposed the Fed to charges it
overstepped its authority.
“In the current political environment it’s probably unrealistic to
expect things to cool off,” said Roberto Perli, a partner at Cornerstone
Macro LP in Washington, D.C., and a former Fed economist. “The Fed was
forced by the circumstances of the crisis to take a series of
controversial actions, not just QE but the whole crisis response, the
bailouts, the facilities they put in place for banks and nonbanks.”
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