Audit The Fed

Bill to Audit the Federal Reserve Bank passes the House in a landslide but is expected to die before the Senate even votes

Congressman Ron Paul

Republican Presidential Candidate and Congressman Ron Paul wrote Audit the Fed, a bill meant to create more transparency and accountability of the Federal Reserve Bank.

The bill was passed in the House of Representatives on July 25 by a 327-98 vote. Of the bill’s supporters 238 Republicans and 89 Democrats voted in agreement to pass the Audit the Fed bill.

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The Federal Reserve Bank is the bank of the U.S government, more pointedly the U.S Treasury Department. The two institutions are charged with managing the nations monetary policies and government spending. After the government bailed out the big banking corporations in 2008 U.S taxpayers began to question the Federal Reserve Banking system. Many people found it grossly unjust that U.S taxpayer money funded the bailout.

Officials of the Federal Reserve say the proposed bill will compromise their independence and increase government regulation and meddling in Federal Reserve policies.

Paul and other sponsors of the bill believe that the Federal Reserve needs to be more transparent and forthcoming with their financial decisions and believe that U.S citizens deserve to be more informed, especially after the big bank bailouts of 2008.

Chairman for the Federal Reserve, Ben Bernanke said, “We are quite transparent and accountable on monetary policy. Besides our statement, besides our testimonies, we issue minutes after three weeks. We have quarterly projections, I give a press conference four times a year, there’s quite a bit of information provided to help Congress evaluate monetary policy as well as the public.”

Congressman Paul is known to be an avid contester of the Federal Reserve. He used this as a platform in his last two presidential campaigns and authored a book, “End the Fed,” which was 6 on the New York Times Bestseller List when it debuted in 2009.

Despite the Audit the Fed bill’s success in the House, the Audit the Fed Bill is not expected to make it out of the democrat dominated Senate. Senate Majority Leader Democrat Harry Reid said that the bill would not be put to vote.

Steny Hoyer a Democrat House Minority Whip said “ I agree with Chairman Bernanke that congressional review of the Fed’s monetary policy decisions would be a ‘nightmare scenario,’ especially judging by the track record of this Congress when it comes to governing effectively.”

Ron Paul plans on retiring from congress after this year, his fifteenth as U.S. Representative for Texas.

 On July 18 during the House Financial Services Committee, one of Paul’s last committee meetings, Ron Paul commented that despite his laboring efforts to control, monitor or end the fed, he feels some things will just never change.

“We never change policy,” he said. “We never challenge anything. We just keep doing the same thing. Congress keeps spending the money. Welfare expands exponentially. Wars never end.”

Resources:

The Washington Post- Read Article

ABC News- Read Article

New York Newsday- Read Article

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