On November 2, voters gave Republicans historic gains in the House and above-average gains in the Senate in a vote for reduced spending, less intrusive government, and low taxes. On November 3, the Federal Reserve voted to resume direct purchases of Treasury securities in order to promote economic growth. One downside will be the further depreciation of the dollar. Another will be the spectre of future inflation as all America's bills must come due eventually. As you can imagine, Republicans aren't too happy. Here's Mike Pence:
Today, the Federal Reserve has entered uncharted territory. Diluting the value of the dollar by continually increasing the supply of money poses an incalculable risk. Instead, Congress needs to embrace pro-growth fiscal policies to stimulate our economy rather than masking our fundamental problems by artificially creating inflation. The American people deserve a government that protects the purchasing power of the dollar.
It's well known that the next Congress will revisit and revise Obama's fiscal policies. What the next Congress will also do is revisit and revise Chairman Bernanke's monetary policies. "Audit the Fed" may be only the beginning.