Bowling Green Today

WASHINGTON, D.C. - The U.S. Senate voted on U.S. Senator Rand Paul's "Audit the Fed" legislation, which was introduced as an amendment to the pending spending bill in the Senate. This legislation, also known as the Federal Reserve Transparency Act, aimed to prevent the Federal Reserve from concealing vital information on its operations from Congress.

Dr. Paul's amendment garnered support from a bipartisan group of 46 senators, including himself. However, 51 Senate Republicans and Democrats voted against auditing the Fed. The full vote tally can be viewed on the Senate's website.

In his floor remarks, Dr. Paul emphasized the immense power held by the Federal Reserve and the need for scrutiny. He highlighted the Fed's actions during the pandemic, where it printed money, purchased government-backed securities, and provided substantial amounts of money to certain industries. This resulted in nearly $5 trillion being added to the Fed's balance sheet, the largest in history.

Dr. Paul referred to a limited one-time audit of Fed actions during the financial crisis, which revealed that over $16 trillion was allocated to domestic and foreign banks. He argued that such inflationary bailouts should not be kept secret from the public. The side effect of the Fed's easy money policies, according to Dr. Paul, is high inflation, which disproportionately affects ordinary Americans.

The senator cited economist Milton Friedman's famous quote that inflation is "taxation without legislation," emphasizing that while Congress cannot control the Fed's actions, these actions can have significant costs for Americans. Dr. Paul's amendment sought to require a full audit of the Fed within one year, aiming to ensure transparency and accountability to taxpayers.

Dr. Paul has long been a proponent of transparency and accountability, particularly with regards to the Federal Reserve. He first introduced his legislation to Audit the Fed in 2011 and has consistently reintroduced it as standalone versions and amendments. The bill has also received bipartisan support, with a majority of the Senate voting in favor of it in 2016.

The Federal Reserve Transparency Act seeks to address concerns surrounding the unchecked power of the Federal Reserve and to shed light on its operations. While the recent Senate vote did not result in the passage of the legislation, it has sparked a conversation about the need for greater transparency and accountability within the Federal Reserve.

The question of whether the Federal Reserve should be subject to regular audits will continue to be a topic of debate in the coming years. As the economy and financial markets evolve, it is crucial for policymakers to consider the implications of a more transparent and accountable Federal Reserve.

The post Dr. Rand Paul Forces Senate Vote on "Audit the Fed" appeared first on Senator Rand Paul.

Click this link to access more information: https://www.paul.senate.gov/dr-rand-paul-forces-senate-vote-on-audit-the-fed/