Chamber president defends Fed from GOP fire

Donohue responded to a question about efforts in the House and Senate to change the mandate of the Federal Reserve. Sen. Bob CorkerBob CorkerPolicymakers forget duty to protect taxpayers from financial failures Overnight Defense: GOP chairman moves ahead with 0B defense bill | Lawmakers eye 355 ship navy | Senate panel seeks answers on shoot down of Syrian jet Overnight Cybersecurity: Trump tweetstorm on Russia probe | White House reportedly pushing to weaken sanctions bill | Podesta to testify before House Intel MORE (R-Tenn.) and Rep. Mike Pence (R-Ind.) on Tuesday said they wanted to change the Fed’s mandate so it would focus exclusively on inflation and not also on maintaining maximum employment.

The announcement by Corker and Pence follows intense GOP criticism of the Fed’s decision to purchase $600 billion in long-term assets in the hope of promoting additional economic growth and lowering the nation’s 9.6 percent unemployment rate. Federal Reserve Chairman Ben Bernanke in recent months has expressed repeated worries about the nation’s slow growth and the difficulty of reducing the jobless rate.

Donohue praised both Bernanke and the Fed, which he said gave the U.S. a “very unique strength” in dealing with financial crises compared to other countries.

Donohue said the Chamber is “hopeful” the central bank’s $600 billion plan, referred to as “quantitative easing,” would be successful.

“We’re hopeful that the Fed’s judgments turn out to be very positive for job creation and economic expansion,” Donohue said.