Why is the Federal Reserve so reluctant to become transparent.\u00a0 Kevin CIrilli writesL The Federal Reserve is lashing out at Sen. Rand Paul\u2019s plan to give Congress more oversight over the central bank, a proposal that could gain traction in the new Republican-led Congress.<\/p>\n
The Kentucky Republican reintroduced his \u201cAudit the Fed\u201d legislation last month with 30 co-sponsors, including other potential 2016 GOP hopefuls, Sens. Ted Cruz (Texas) and Marco Rubio (Fla.).<\/p>\n
The proposal \u2014 once championed by his father, former Rep. Ron Paul (R-Texas) \u2014would subject the central bank to an audit by the Government Accountability Office (GAO).<\/p>\n
Regional bank presidents from around the country are decrying the plan, which they argue could damage the economy.\u00a0 \u201cWho in their right mind would ask the Congress of the United States \u2014 who can\u2019t cobble together a fiscal policy \u2014 to assume control of monetary policy?\u201d Richard Fisher, retiring president of the Federal Reserve Bank of Dallas\/<\/p>\n
Fed Chairwoman Janet Yellen has already vowed to fight the legislation, and President Obama would likely veto it.<\/p>\n
Still, Fed watchers note that Paul has become emboldened by the new Republican majority in Congress. And he possesses an ever louder national microphone, as he moves closer to a 2016 presidential run.<\/p>\n
Together, those factors could elevate the issue in the coming months, a prospect that has spurred strong words from bank officials.<\/p>\n
Retiring Philadelphia Fed President Charles Plosser told The Hill that financial auditing \u201calready exists\u201d for the Fed, and warned that Paul\u2019s plan would empower Congress \u201cto audit and question monetary policy decisions in real time.\u201d<\/p>\n
Paul pushed back against the criticism, saying Fed officials \u201cwill say and do anything to keep their business hidden from the American people.\u201d<\/p>\n
What the press has not made clear in reporting the Great Recession and quantitatie easing is the assets bought by the Fed and who they benetied.\u00a0 An audit by the rerpresentatives of the Ameican people might provide insights into exactly what happened and why the ordinary American citicen is still having a tough time.<\/p>\n
Fed Chair Janet Yellen, who met with Senate Democrats last week on Capitol Hill, is scheduled to testify before Congress later this month. The appearance will be her first since Republicans seized control of the Senate, and she will likely face questions on the legislation.<\/p>\n
Senate Banking Committee Chairman Richard Shelby (R-Ala.), whose panel has jurisdiction on the bill, has also said he is interested in holding hearings on the issue.<\/p>\n
Why is the Federal Reserve so reluctant to become transparent.\u00a0 Kevin CIrilli writesL The Federal Reserve is lashing out at Sen. Rand Paul\u2019s plan to give Congress more oversight over the central bank, a proposal that could gain traction in … Continue reading ![\"Transparent](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/02\/Transparent-Fed.jpg\")
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