At times the conservative effort to end the overwhelming (and secretive) power of the Federal Reserve seems like an almost quixotic task, but a few brave souls keep pushing to see it happen. It seemed close last fall when the House finally passed an Audit the Fed bill, only to see it killed by the establishment in the Senate. However, now we have reason to hope again as the House seems prepared to take on the legislation again, and the Senate will have even fewer reasons to kill the bill this time than last.
Yesterday, thanks in large part to the work done by conservative Congressman [score]Thomas Massie[/score] (R-KY), the House Oversight Committee passed a measure to audit the Federal Reserve, which means it’s now up to the rest of the legislature to see the bill become law.
A question I frequently hear is, “Won’t a full audit compromise the Fed’s independence?” The answer is that without a full audit that includes the Federal Reserve’s decision-making process, how can we know that the Fed is acting independently of the executive branch? Its charter is not to be a second Treasury Department. How can we know that the Fed is operating independently of big bank CEOs and Wall Street? Given the revolving door of managers between the Fed, Treasury, and Wall Street, the opportunity for outside pressure and conflicts of interest abound at the Fed. Only a full audit can demonstrate that the Fed makes decisions independently of the political whims of a President and the profit goals of commercial banks.
Watch my full remarks during the committee markup in the video below!
FreedomWorks chairman Adam Brandon cheered the legislation while urging Congress to move quickly on Auditing the Federal Reserve.
“We’re glad to see that Rep. Massie and Chairman Chaffetz aren’t deterred by Senate Democrats, who, earlier this year, blocked legislation to audit the Federal Reserve, and the fear mongering of central bankers like Ben Bernanke and Janet Yellen. The Federal Reserve Transparency Act is one of the most important pieces of legislation working through Congress, and it will shine much needed light on the actions of the nation’s central bank, which holds incredible influence over the economy. We hope the committee passes the bill and House leadership schedules it for a floor vote very soon.”
Please call your representatives and ask them to support the Audit the Fed bill. As Massie so eloquently put it, “This is a major step toward bringing this bill to the House floor. This bill could make it easier for Members of Congress to monitor the Federal Reserve… The American public deserves more insight into the practices of the Federal Reserve. Behind closed doors, the Fed crafts monetary policy that influences our currency and economy.”
Audit the Fed. Now.
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