On Wednesday, the U.S. Senate voted on U.S. Senator Rand Paul’s (R-KY) “Audit the Fed” legislation, which was 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 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. Meanwhile, 51 Senate Republicans and Democrats voted against auditing the Fed. You can view the full vote tally HERE.
You can watch Dr. Paul’s floor remarks HERE, and learn more about Audit the Fed HERE.
Below are Dr. Paul’s floor remarks:
“The Federal Reserve effectively controls the economy, but without scrutiny. No other institution has so much unchecked power. 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.
“When Dodd-Frank ordered a limited one-time audit of Fed actions, the Government Accountability Office uncovered that during the financial crisis, the Fed doled out over $16 trillion to domestic and foreign banks. This kind of inflationary bailout should not be kept secret from the public. While the Fed’s easy money policies make the rich richer, the side effect is high inflation.
“As Milton Friedman famously explained, inflation is taxation without legislation. Congress cannot control the Fed’s actions, but Fed actions can cost Americans dearly. Just ask any parent who has to feed his or her family during historically high inflation rates. My amendment would require a full audit of the Fed within one year. It is time for the Federal Reserve to operate in a manner that is transparent and accountable to the taxpayers.
“I ask for a yes vote.”
