January 22nd, 2010 | Uncategorized

Blumenthal LAW ’73 speaks out against Bernanke

He may have been Time magazine’s person of the year, but Ben Bernanke would not get Senatorial hopeful and Connecticut Attorney General Richard Blumenthal’s LAW ’73 vote for another four years as chairman of the Federal Reserve. Blumenthal released a statement today opposing Bernanke’s reappointment.

And Blumenthal is not alone. Rep. Barbara Boxer of California and Rep. Russell Feingold of Wisconsin also came out against Bernanke today, The New York Times reported.

Read Blumenthal’s full statement below.

“While I have great respect for Chairman Bernanke, now is the time for new leadership at the Federal Reserve to do more for economic recovery on Main Street not just Wall Street. I oppose Chairman Bernanke’s confirmation to a second term as Chair of the Federal Reserve.

As Attorney General, I have written to Chairman Bernanke repeatedly, asking him to take action against unconscionable bonuses to failed financial executives, spiraling credit card fees and interest rates, and other abuses and excesses requiring reform. Despite the intent of Congress, such increasing fees and interest rates have been widely imposed, even on many consumers who pay in full and on time.

Chairman Bernanke’s responses have been inadequate, consisting of broad generalities and platitudes, failing to fully acknowledge the severity of issues I and others have raised or the need for real reform. He has failed to support common sense reforms to safeguard investors and consumers and prevent Wall Street from engaging in risky practices that precipitated our nation’s worst economic crisis since the Great Depression.

I respect Chairman Bernanke’s dedicated service, but I see firsthand as I’ve traveled the state how our economic recovery is failing to reach our citizens and small businesses.

Our country and financial system needs someone as knowledgeable as Chairman Bernanke – but with vision and commitment to bring economic recovery to everyday Americans.”

  • Yale 08

    As is now typical, Blumenthal is barking up the wrong tree. The primary purpose of the Federal Reserve is to stabilize the value of the dollar first, and to support the US economy via monetary policy at a distant second. It is far more the responsibility of the US Treasury and Congress to enact programs that are in the best economic interests of American voters; by contrast, the Federal Reserve is deliberately supposed to act in the best interest of the US dollar (and to do so beyond the realm of political influence) in order to build credibility of the currency’s value with investors and foreign trade partners.

    Confusing these priorities should, if anything, raise severe questions about whether Blumenthal has the character and wisdom fitting of a Senator, for if his strategy in the US Senate is to pander ad nauseam with policy views that are misleading — if not outright false — he will do a great disservice to his country, even compared to his less-enlightened colleagues on Capitol Hill.