The jobs and housing boom promised by House Budget Committee Chairman Paul Ryan relies upon an economic theory that has been rejected by both the chairman of the Federal Reserve Board and the International Monetary Fund.
Representative Paul Ryan, chairman of the House Budget Committee, declared this month that the U.S. national debt “is hurting our economy today.” It’s an idea embraced by almost every Republican and even some Democrats.
Federal Reserve Chairman Ben S. Bernanke can find two messages from a larger-than-forecast surge in job growth: his unprecedented stimulus is working, and the Fed should keep buying $85 billion in bonds each month.
The end of Ben S. Bernanke’s term as Federal Reserve chairman in January 2014 hasn’t stopped investors from betting the central bank will hold the benchmark interest rate close to zero into the following year.
The Federal Reserve will make greater use of its reverse-repurchase agreement facility while policy makers shift focus to rate guidance from asset purchases, according to the central bank’s former markets group head.
Federal Reserve officials are publicly disagreeing over the benefits of pursuing new monetary stimulus in a sign that Chairman Ben S. Bernanke hasn’t secured a consensus on whether to buy more Treasuries.