Pennsylvania Senator Pat Toomey is expressing concern that inflation may soon be a problem in the American economy.
Speaking to the Pennsylvania Press Club, the Republican said he has concerns about the Federal Reserve’s decision making.
“I happen to think that the Federal Reserve is engaged in a very dangerous monetary policy,” Toomey said. “I think the risk of inflation running out of control, and running for too long and too hot, is a very significant risk.”
Toomey said with the economy is growing and unemployment is going down, he doesn’t understand keeping interest rates at zero.
“The Fed still has a zero interest rate policies, so negative real interest rates on the short end, and they’re on pace to buy $1.4 trillion worth of securities per year,” Toomey said. “That’s a massive amount of cash to be injecting into system. Why is that necessary? I don’t think it is.”
Fed chair Jerome Powell said last week that discussions may soon begin about when to taper interest rates.
