Lawmakers Move Closer To Curtailing Fed Independence

0 Shares

Lawmakers move closer to curtailing Fed independenceThe House Financial Services Committee voted earlier this month to advance a proposal which would remove the ban on congressional audits of Federal Reserve interest rate decisions.

Offered by Representative Ron Paul (R-TX) a vocal advocate of abolishing the Fed, the measure is an amendment to a bill creating a council of regulators to monitor systemic risk, according to Bloomberg.

Specifically it demands that the Fed and its 12 regional banks be audited within a year after enactment of interest rate changes.

"This is the bill that would allow the people to win over the special interests," said Paul, quoted by the news source, but there has been no shortage of criticism, centering on the alleged impact of a loss of independent monetary policy on the dollar.

Among the biggest opponents of the proposed amendment is the current Fed Chairman Ben Bernanke, who wrote in the Sunday Nov. 29 edition of The Washington Post that it was "very much out of step with the global consensus on the appropriate role of central banks," and added that it "would seriously impair the prospects for economic and financial stability in the U.S.."

The Senate Banking Committee began hearings last week on Bernanke’s recent nomination for a second term as Fed chairman.
ADNFCR-1961-ID-19487219-ADNFCR

Special To Personal Liberty

You Sound Off! is written by our readers and appears the last Wednesday of each month. If you would like to submit an article or letter to the editor for consideration for You Sound Off!, send it to yousoundoff@personalliberty.com by the Friday before the last Wednesday of the month. To be considered, a submission should be 750 words or less and must include the writer's name, address and a telephone number. Only the writer's name will be published. Anonymous submissions will not be considered.

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.