In his first public comments on the Federal Reserve’s move to stimulate the economy and reduce unemployment, Mitt Romney called the plan a “sugar high.”
Under a Romney presidency, “we’re not going to have to look for the sugar high” that comes with quantitative easing, he said at a fundraiser in New York City.
“Recognize that as the Federal Reserve keeps on trying to stimulate the economy by printing more money that there’s a cost to that,” he argued. “The value of your savings goes down. People who are living on fixed incomes don’t see much interest income any more. And the value of the dollar goes down and the risk for long-term inflation goes up. There’s 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.”
Romney policy adviser Lanhee Chen made similar comments on Thursday.
Fed Chairman Ben Bernanke said Thursday that he saw little risk the economy would “overheat” and cause inflation.