From the NYT:
The Federal Reserve chairman, Ben S. Bernanke, faced harsh questions Wednesday about the central bank’s efforts to stimulate the economy, in his first hearing before the new Republican majority in the House.
“My concern is that the costs of the Fed’s current monetary policy — the money creation and massive balance sheet expansion — will come to outweigh the perceived short-term benefits,” Representative Paul D. Ryan of Wisconsin, the new chairman of the House Budget Committee, said in his opening remarks.
Mr. Ryan expressed alarm about “a sharp rise in a variety of key global commodity and basic material prices,” as well as the recent rise in yields in longer-term Treasury securities.
While acknowledging that consumers in the United States were not yet experiencing higher prices, Mr. Ryan warned that “the inflation dynamic can be quick to materialize and painful to eradicate once it takes hold.”
See the Video on C-Span.
