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Entries in Quantitative Easing (12)


CEI - Unanswered Questions for Janet Yellen

CEI Experts Available for Comment


Washington, DC, Jan. 6, 2013 – The Senate today is expected to confirm Janet Yellen to head the Federal Reserve, despite unanswered questions concerning Yellen's views and plans. Those unanswered questions include: her policies on inflation, quantitative easing, the Fed's conflicting mandates on inflation and unemployment, the needlessly complicated Basel III standards for how much capital banks should keep in reserve, Dodd-Frank implementation and reforms, and more.

Joint Statement by CEI's Iain Murray, John Berlau, and Ryan Young

Questions about inflationary monetary policy, overregulation from Dodd-Frank, transparency at the Federal Reserve and the interplay of all these issues as they affect growth and freedom. We hope our lawmakers will do what they can to hold the Fed accountable and make sure these questions are answered. > View the full list of questions for Yellen

> Interview an expert

> See also: Yellen Pick Shows Left Unconcerned With Value of The Dollar, CEI Analysts Say

Iain Murray

Director, CEI Center for Economic Freedom

John Berlau

Senior Fellow, Finance & Access to Capital

Ryan Young

Fellow in Regulatory Studies

CEI is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government.  For more information about CEI, please visit our website,, and blogs, and  Follow CEI on Twitter!


American Principles In Action - The Only Way to Stop Big Government

American Principles Project

The Only Way to Stop Big Government

APP Chairman Sean Fieler has an op-ed in today’s Wall Street Journal detailing the Federal Reserve’s unprecedented intervention to buy government debt over the last few years. He pinpoints the reason Washington has gotten so big and intrusive — because the Fed has enabled Congress to spend money without consequence. The only way to restore limited government is to end this monetary policy. As Fieler puts it, “If today’s Republicans are going to roll back President Obama’s massive expansion of government, they will need the muscle of the bond market free from the Federal Reserve’s manipulation.” 
How can we begin to undo the Fed’s unchecked abuse of its power? Senate Republicans on Monday must vote NO on President Obama’s Fed chair nominee Janet Yellen, to affirm that they are against this big government scheme. Fieler also proposes a congressional resolution to limit the amount of government debt the Fed can accumulate. Only then will Washington have a limitation on what it can spend and do, just as the Constitution designed for. 

Read the article here:
How to Challenge Yellen—and Big Government

(Note: This article is behind a paywall, so for your convenience we have included the full article below.)
How to Challenge Yellen—and Big Government
Sean Fieler
Wall Street Journal -- Jan. 2, 2014 7:12 p.m. ET
'I want to come back as the bond market. You can intimidate everybody." That was James Carville, President Clinton's chief political consultant, talking to this newspaper in February 1993.

When President Clinton backed away from HillaryCare and the rest of his big-government agenda, it wasn't just Democratic losses in the 1994 midterm elections that forced his hand. It was the power of the bond market, a point Mr. Carville understood but Republicans seem to have forgotten.

If today's Republicans are going to roll back President Obama's massive expansion of government, they will need the muscle of a bond market free from the Federal Reserve's manipulation. History suggests that only the prospect of higher and increasingly painful financing costs chastens committed big spenders. A liberated, and consequently less docile, bond market would not only restrain Washington's profligacy, it would also free the Republican Party to refocus on the big ideas and positive vision that made it a global force in the 1980s.
No cause unites the Republican Party like the battle for limited government. From Ted Cruz's government shutdown to Paul Ryan's budget compromise with Patty Murray, the political tactics have varied but the goal of limited government has remained the same. The push for limited government even polls well. According to a recent Gallup poll, an overwhelming majority of Republicans, 81%, and a solid majority of Americans, 60%, think the federal government has too much power.

But despite the public's support and Republicans' herculean efforts, the campaign to pare back government has failed both politically and substantively. The federal government continues to grow while Republicans are increasingly derided for their obsession with spending cuts. Far too many Americans now see the GOP as opposing everything and favoring nothing.

The bond market's apparent indifference to the growth of government has made Republicans' sense of urgency about limiting government seem mystifying to many Americans. Trillion-dollar deficits provoked neither a spike in government bond yields nor Wall Street panic. Instead, the bond market actually welcomed Washington's record deficits with a rally, and Wall Street profited. The type of intimidation that Mr. Carville feared was nowhere to be found.

The bond market's reaction, however, is not natural or sustainable. And it is not the inevitable product of the dollar's reserve-currency status, as some would suppose. After all, the dollar was the world's reserve currency during President Clinton's first term, when the U.S. bond market still commanded some respect in Washington. Rather, America's quiescent bond market is a result of Federal Reserve manipulation.

Even with tapering under way and the end of quantitative easing on the horizon, a truly free bond market is not yet in the offing. So long as a threat of the Federal Reserve's bond buying looms, even rising bond yields are unlikely to produce discipline in Washington. Mario Draghi, the head of the European Central Bank, has masterfully demonstrated the power the Fed would have merely waiting in the wings. By standing at the ready to buy government bonds if they decline, Mr. Draghi tamed Europe's bond markets, driving Italian 10-year yields down to 4%, from 7%, as Italian debt-to-GDP, currently at 127%, continued its unsustainable climb.

Monetary policy's dangerous interplay with irresponsible fiscal policy is as old as central banking itself. It was, after all, with good reason that the Federal Reserve Act of 1913 did not permit the Fed to buy government bonds, a restriction that Congress did not clearly lift until 1935. Even then the Fed did not use its power to control the bond market until 1942, and did not abuse it until 2012 by initiating a third round of quantitative easing.

With the economy clearly expanding and the Federal Reserve still unwilling to set the bond market free, the time for Republican action has come. President Obama has made clear his preference for a supine bond market and the big government programs that it will finance. Janet Yellen, his nominee as Fed chairman, has been an outspoken champion of the Fed's bond buying.

Ms. Yellen's vigorous support for quantitative easing gives Republicans a perfect opportunity to oppose the unhealthy alliance between big government and the Federal Reserve. Republican senators should vote against her confirmation, or, better still, make their support for her conditional upon the passage of a resolution capping the growth of the Federal Reserve's already bloated balance sheet. A $4.5 trillion cap and a program to reduce the Fed's balance sheet to $3 trillion by decade's end would ensure continued tapering and an eventual unwinding of the Fed's monetary adventurism.

With the bond market off the sidelines and back on the side of limited government, Republicans could revive their party's Reagan-Kemp legacy: the party of the future, not of austerity. They could then once again advocate new policies, confident that their pro-liberty, pro-growth programs would present alternatives rather than additions to America's already overgrown federal government.

Mr. Fieler, president of Equinox Partners LP, a New York-based hedge fund, is chairman of the American Principles Project, a Washington advocacy group.


CEI Today: Fiat getting a bailout?, quantitative easing, and social cost of carbon canard 

Friday, January 3, 2014
In the News Today


Fox Business: Fiat getting a bailout from U.S. taxpayers?

Competitive Enterprise Institute’s John Berlau and Forbes Media Chairman Steve Forbes on Fiat’s deal to take full control of Chrysler. > View the Fox Business discussion

> See also: The Great Italian Auto Bailout — Courtesy of U.S. Taxpayers


> Interview John Berlau

> Follow John Berlau on Twitter



Washington Times: Stop the money presses! Two cheers for ‘tapered quantitative easing’


Leading up to Janet Yellen’s Jan. 6 confirmation vote, the Federal Reserve recently announced that it will taper back its bond-buying program, known as quantitative easing. This was encouraging news for inflation hawks, if barely so. Right now, the Fed buys $85 billion worth of mortgage-backed securities and Treasury bonds every month from financial firms. These firms, flush with cash from the Fed, then diffuse those dollars throughout the economy through loans and other financial activities. Going forward, the Fed will roll back its monthly purchases from $85 billion to $75 billion, or roughly 11 percent. This is a good start, but the Fed should go further and taper away the rest of quantitative easing. > Read more

> Inteview Ryan Young


> Follow Ryan Young on Twitter

DOE & "SOCIAL COST OF CARBON" - MARLO LEWIS Social Cost of Carbon: DOE Rejects Petition to Reconsider Microwave Rule

On Christmas eve, the Department of Energy (DOE) rejected the Landmark Legal Foundation’s petition to reconsider the agency’s final rule establishing first-ever energy-efficiency standards for microwave ovens. Whether or not the microwave rule itself has such wide-ranging implications, the social cost of carbon analysis is a potent weapon in the war on coal and other fossil fuels. As a pretext for expanding government control of the economy, redistributing wealth, and rigging energy markets, nothing beats the social cost of carbon. > Read more

> Interview Marlo Lewis





CEI is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government.  For more information about CEI, please visit our website,, and blogs, and  Follow CEI on Twitter!




ALG's Daily Grind - Will Janet Yellen stop printing $900 billion a year in 2014?


Dec. 26, 2013

Will Janet Yellen stop printing $900 billion a year in 2014?
With credit slowing down in 2013 and rates already slightly rising, does incoming Fed head Janet Yellen have the fortitude to taper into the face fierce economic headwinds?

Cartoon: More Coal

Podesta to carry out the Obama Doctrine
With John Podesta's imminent return to the White House as an advisor specializing in energy policy, any optimism in a robust energy future for the U.S. may be misplaced. Be afraid. Be very afraid.

ALG Posts of the Year: Unemployment rate is meaningless
You liked, we saw. Counting down the final days before the new year, we are highlighting the top posts from 2013 as decided by what our followers liked, shared, re-tweeted, and talked about on social platforms such as Facebook and Twitter.


ALG's Daily Grind - It's time to throw big business off the Republican stool 


Dec. 20, 2013

It's time to throw big business off the Republican stool
Republicans just might discover that they are better off shedding the Party of the Rich label by throwing these corporate welfare, government leeches to the curb altogether leaving them to commune with those on the left who hate them.

Stop the presses! Fed taper won't stop its $75 billion a month money-printing
Instead of adding $1.02 trillion of treasuries and mortgage bonds to its balance sheet a year, the Federal Reserve has announced starting in January it will just be adding a "mere" $900 billion.

The power-mad EPA
The threat is the EPA, not mercury.

Hurt: D.C. gets the vapors, calls sequester too much
"[N]obody seems to be able to explain how the new cuts are just as severe as the old cuts yet equally unfelt."