Republican leaders warn Fed that further easing would hurt the U.S. economy

WASHINGTON (MarketWatch)
The congressional Republican leadership sent a letter this week to Federal Reserve Board Chairman Ben Bernanke urging him to refrain from any more easing moves, saying that the American economy should be driven by consumer confidence and worker innovation and not central-bank policy.
Such moves could hurt the U.S. dollar, the letter said.
 "We have serious concerns that further intervention by the Fed could exacerbate current problems or further harm the U.S. economy," the letter from the GOP congressional leaders added.
The letter was sent to Bernanke on Monday as he prepared for a two-day meeting of the Federal Open Market Committee, which sets monetary policy.
With interest rates, the Fed's traditional policy tool, stuck near zero, the Fed has been considering unconventional steps to revive the economy.
The FOMC's decisions are expected to be announced Wednesday afternoon.