Opposing Janet Yellen's nomination as chair of the Federal Reserve Board of Governors is both good policy and good politics for Senate Republicans.
In her remarks Thursday before the Senate Banking Committee, Yellen made it clear that she will keep interest rates low and the Fed's balance sheet growing in an effort to boost employment. What remains less clear is whether this policy will actually work. After all, labor participation rates remain near 20-year lows despite the Fed's nearly $4 trillion balance sheet.
While the Fed's easy-money policies have not produced many jobs, they have produced a persistent, low rate of inflation that is choking the American middle class. Since the asset purchases began five years ago, the average American family has experienced rising prices and stagnant wages. The resulting decline in living standards explains why voters ranked rising prices nearly tied with unemployment as their top economic concern during the 2012 election.