Bowling Green Today

Today, 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, would have prevented the Federal Reserve from concealing vital information on its operations from Congress. Dr. Paul's amendment was supported by a bipartisan group of 46 senators, including Dr. Paul.

"The Federal Reserve effectively controls the economy, but without scrutiny. No other institution has so much unchecked power," said Dr. Paul during his floor remarks. "The Fed demonstrated its unlimited authority during the pandemic. The Fed printed money, purchased government-backed securities, and doled out massive amounts of money to favored industries. The result added almost $5 trillion to the Fed's balance sheet, the largest in our history."

Dr. Paul's amendment aimed to address the lack of transparency and accountability in the Federal Reserve's actions. He highlighted the need for the public to be aware of the Fed's activities, especially considering the inflationary impact they can have. "As Milton Friedman famously explained, inflation is taxation without legislation. Congress cannot control the Fed's actions, but Fed actions can cost Americans dearly," said Dr. Paul.

The legislation called for a full audit of the Fed within one year, as Dr. Paul emphasized the importance of the Federal Reserve operating in a transparent and accountable manner to the taxpayers. However, despite the bipartisan support, the amendment did not pass, with 51 Senate Republicans and Democrats voting against auditing the Fed.

Dr. Paul has long been a proponent of transparency and accountability, particularly when it comes to the Federal Reserve. He first introduced his legislation to Audit the Fed in 2011 and has consistently reintroduced it throughout his time in the Senate. In 2016, a majority of the Senate voted in support of Dr. Paul's legislation to hold the Fed accountable.

While the Audit the Fed amendment did not pass this time, it has once again brought attention to the issue of transparency and accountability in the Federal Reserve. Dr. Paul's efforts have sparked important conversations about the power and influence of the Fed in shaping the economy. As the debate continues, it remains to be seen whether further steps will be taken to address the concerns raised by Dr. Paul and others regarding the need for transparency in the Federal Reserve's operations.

For additional details, please follow this link: https://www.paul.senate.gov/dr-rand-paul-forces-senate-vote-on-audit-the-fed/