House Speaker John Boehner shrugged off the Fed chairman’s fears with the usual boiler plate, saying July 23: “Well, I think what the chairman’s referring to is the fact that we’ve got spending that continues to be out of control, a red tape that’s out of control.”
And it appears neither Boehner nor Senate Minority Leader Mitch McConnell are interested in the proposals floated recently by President Barack Obama on his speaking tour. McConnell on Tuesday said Obama’s plan “lacks meaningful bipartisan input” and ruled out any corporate tax overhaul that isn’t “revenue neutral.”
But push will soon come to shove. Bernanke has said publicly for months that quantitative easing can’t go on forever given the threat posed by inflation. Congress and Obama should make sure the economy’s growth is self-sustaining before the chairman shuts off the spigot.