By Colleen McCain Nelson and Damian Paletta
Republican presidential candidate Mitt Romney, in his most explicit criticism of the Federal Reserveās recent moves, on Friday said the central bank was offering the economy nothing more than a āsugar highā that would cause pain for everyone from savers to the U.S. dollar down the road.
The criticisms, made at a fundraiser in New York, came less than 24 hours after the central bank announced open-ended plans to buy mortgage-backed securities to try and help the jobs market. Democrats have cheered the move, though many Republicans have been highly critical. The White House, as is customary on Fed decisions, has not weighed in. Mr. Romney didnāt hold back on Friday though.
āRecognize that as the Federal Reserve keeps on trying to stimulate the economy by printing more money that thereās a cost to that,ā Mr. Romney said. āThe value of your savings goes down. People who are living on fixed incomes donāt see much interest income any more. And the value of the dollar goes down and the risk for long-term inflation goes up. Thereās real cost to these stimulative print-more-money policies. The real course ahead for America is to encourage the growth of our economy not just to go out there and print more money.ā
Earlier, in an interview with ABC News, Mr. Romney said the Fedās move reflects poorly on Mr. Obamaās stewardship of the economy, and moreover, he disagreed with the Fedās move.
āThe presidentās saying the economyās making progress, coming back. Bernankeās saying, āNo, itās not. Iāve got to print more money,ā ā Mr. Romney told interviewer George Stephanopoulos. He added: āI donāt think what Bernanke is doing is going to get the economy going. I think we have to have a leadership in Washington that encourages the private sector. I think printing more money, at this point, comes at a higher cost than theā¦benefit itās going to create.ā