Lawmakers to hear from QE3 critics after Yellen testifies

Fri Feb 7, 2014 2:46pm EST

(Reuters) - A panel of economists largely critical of recent Federal Reserve policy will appear on a panel immediately following new Fed Chair Janet Yellen's report to Congress on the outlook for the economy and monetary policy.

The U.S. House Committee on Financial Services will hear reactions to Yellen's testimony from Stanford University professor John Taylor, the Cato Institute's Mark Calabria, the American Enterprise Institute's Abby McCloskey and former Fed Vice Chair Don Kohn, according to a notice to members published on the committee's website.

Committee Chairman Jeb Hensarling is conducting a year-long set of hearings into the Fed aimed at questioning its mandates and its policies.

Kohn, who was Fed vice chair before Yellen took the job in 2010, has been supportive of Ben Bernanke's unprecedented efforts to boost the economy through massive bond-buying programs.

The other three panelists are far more skeptical, including Taylor, who has long called for an end to bond-buying and of the Fed's near-zero rate policy.

It's not the first time lawmakers have set up such a panel, said Douglas Holtz-Eakin, a Republican policy analyst, who traces the practice to Democrat Barney Frank in 2007.

Nevertheless, he said, the spotlight will likely remain squarely on Yellen, and any hopes of the second panel that someone pays them attention "will be in vain."

(Reporting by Ann Saphir; Editing by Bernadette Baum)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.