Robert C. Hockett, financial regulations expert and professor of law at Cornell University, argues that the Federal Reserve’s program of asset purchases serves as the nation’s de facto national fiscal policy because of partisan gridlock in congress.
Hockett says: "Chairman Bernanke's remarks about the Fed’s asset purchasing program this week highlight the macroeconomic tragedy wrought by partisan gridlock in the national legislature. Namely, the fact that monetary policy continues to have to serve as the nation's de facto fiscal policy.
“Many see already what all will see in future – that during this dark time, the Federal Reserve System alone has stood between us and complete economic disaster. Real movement forward, however, will continue to await a functional legislature.”
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