FOR IMMEDIATE RELEASE:
November 1, 2023
Contact: Press_Paul@paul.senate.gov, 202-224-4343
Senate to Vote on Dr. Rand Paul’s “Audit the Fed”
WASHINGTON, D.C. – Today, the Senate will vote on U.S. Senator Rand Paul’s (R-KY) “Audit the Fed” legislation, which has been introduced as an amendment to the pending spending bill in the Senate (Paul 1217). This legislation, also known as the Federal Reserve Transparency Act, would prevent the Federal Reserve from concealing vital information on its operations from Congress.
Despite wielding significant control over the American economy, the Federal Reserve operates in secret. The protective cloak from accountability is supposedly justified by the necessity of the Fed’s independence from political influence. Though Congress delegated its authority to regulate the value of money to the Fed, Congress still sets the Fed’s objectives and Congress still has the responsibility to oversee the Fed.
When Dodd-Frank ordered a limited, one-time audit of Fed actions, the Government Accountability Office (GAO) uncovered that, during the financial crisis, the Fed lent out over $16 trillion to domestic and foreign banks. This amount of lending or bailouts, which could lead to high levels of inflation, should not be kept secret from the public.
“No institution holds more power over the future of the American economy and the value of our savings than the Federal Reserve,” said Dr. Paul. “It’s long past time for Congress to stop shirking its duty and hold the Federal Reserve accountable.”
“Whenever the U.S. government demands secrecy, our reaction should be, ‘what are they hiding?’ For too long the Federal Reserve has operated in the shadows,” said Dr. Ron Paul, Chairman of the Ron Paul Institute. “We cannot live in liberty without government transparency. I strongly endorse Sen. Paul’s Federal Reserve Transparency Act. Audit the Fed!”
“The Federal Reserve operations, motivations, and accountancy has been clouded in mystery for more than a century,” said Jeffrey Tucker, President of the Brownstone Institute. “The central bank in a free society should be transparent to the people. Dr. Paul’s Federal Reserve Transparency Act begins this, and it is the least we can demand.”
“The U.S. Senate will vote this week on SA 1217 — Dr. Paul’s “Federal Reserve Transparency Act” legislation. This legislation is extremely important because government works best when it is accountable, its operations transparent, and checks and balances are in place. While the Fed ought not be a politically motivated entity, it must be subject to oversight and its actions must not be hidden in the dark,” said George Landrith, President of Frontiers of Freedom Institute. “Dr. Paul’s “Federal Reserve Transparency Act” is an important step in achieving accountability and transparency and making sure that there are checks and balances in place. The Fed is in desperate need of this reform. The Fed’s mismanagement of our national economy couldn’t be more obvious given the national economic troubles that it has played a role in making and exacerbating. Dr. Paul’s bill couldn’t be more timely or more needed.”
“After printing trillions of dollars, the groupthink at the Fed led them to spread absurd claims that inflation would be ‘transitory.’ Loose monetary policy has plagued our country for too long, engineering hardships for the American people that only got worse with each increase in interest rates to fight inflation. Sen. Paul’s amendment will provide much-needed oversight for this unaccountable entity,” said Adam Brandon, President of FreedomWorks.
“The Fed has an enormous impact on our economy, so it is important to have as much transparency and accountability as possible. NTU is pleased to support Senator Paul’s efforts to audit the Fed,” said Brandon Arnold, Executive Vice President of National Taxpayers Union.
“TPA is excited to support Dr. Rand Paul’s Federal Reserve Transparency Act. This legislation will enhance transparency at America’s central bank and most prominent economic institution. This legislation will usher in heightened Congressional oversight abilities, including reviewing foreign transactions and assessing monetary policy decisions. The Fed’s role in the U.S. economic system is substantial and its powers, which impact taxpayers and consumers on a daily basis, cannot go unchecked,” said David Williams, President of the Taxpayers Protection Alliance.
Dr. Paul’s amendment would require the Government Accountability Office (GAO) to conduct a thorough audit of the Federal Reserve’s Board of Governors and reserve banks within one year of enactment. The amendment would allow GAO to fully audit:
- Transactions for or with a foreign central bank, government of a foreign country, or non-private international financing organization;
- Deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
- Transactions made under the direction of the Federal Open Market Committee; and
- Discussions or communications among Federal Reserve officers, board members, and employees regarding any of these matters.
Americans deserve to be made aware of the practices of the Federal Reserve, whose decisions can devalue our currency and slow economic growth. It is time the Federal Reserve operates in a manner that is transparent and accountable to the taxpayers.
Full text of the Audit the Fed amendment can be found HERE.
Since his election to the Senate in 2010, Dr. Paul has been a leading voice for transparency and accountability, particularly with the Federal Reserve. Dr. Paul first introduced his legislation to Audit the Fed in 2011, and throughout his time in the Senate he has reintroduced his legislation as both standalone versions and amendments. Audit the Fed has also received bipartisan support in the Senate. In 2016, a majority of the Senate voted 53-44 in support of Dr. Paul’s legislation to hold the Fed accountable.