SBE Council Chief Economist on FOMC Statement and Economic Policy

Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council (SBE Council), issued the following remarks on yesterday's statement on monetary policy from the Federal Open Market Committee:

"Many in the financial markets and business community waited anxiously for what the FOMC would say today. But in terms of actual policy implications, it matters not at all. All we heard different was that the Fed downgraded its view on the pace of recovery. But if you pay attention to the poor state of small business, and dismal trends in the labor force and employment, you already knew that robust economic growth is nowhere to be found.

"Monetary policy has had no impact on reviving the economy for nearly two years, and no one should expect it to have a positive effect in the future. The economy's problems come overwhelmingly from the fiscal side of the equation. That is, misguided government spending, tax, regulatory and trade policies are raising costs, limiting opportunities, and generating uncertainty and fear for entrepreneurs, businesses and investors. There's nothing the Fed can do about that. It's up to the White House and Congress."