UPDATED 7:59 PM PT – Friday, August 6, 2021
Democrat Sen. Joe Manchin (W.Va.) said he’s alarmed by the Federal Reserve’s current monetary policy. In a letter to Fed Chairman Jerome Powell on Thursday, Manchin called for the central bank to peel back its pandemic-era stimulus measures.
He said although he believes the measures were necessary during the start of the COVID pandemic, they are now sparking record inflation. “It is imperative we begin to understand that long-term policy responses tailored for an economic depression, may not be what is required for today’s economy and could result in higher than desired inflation if not removed in time,” wrote Manchin.
I'm urging Fed Chair Jerome Powell & the Federal Open Market Committee to immediately reassess America’s stance on monetary policy & begin to taper the Fed’s ongoing stimulus in order to avoid saddling Americans w/ inflation taxes & overheating our economy https://t.co/mYXzThdZMf
— Senator Joe Manchin (@Sen_JoeManchin) August 5, 2021
Last year, the Fed set short-term interest rates to near zero and started purchasing $120 billion per month in bonds to help stimulate the economy amid pandemic lockdowns. Manchin said he’s concerned with the Fed’s continuous spending at emergency levels despite the economy being fully opened at this point.