Tag Archives: Federal Reserve Transparency Act

Rand Paul to Introduce ‘Audit the Fed’ as Amendment to Senate Banking Bill

Washington, D.C. – Senator Rand Paul (R-KY) announced on March 5 that he will introduce his “Audit the Fed” legislation, which would permit a full audit of the Federal Reserve System, as an amendment to the Senate Banking Bill. The Senate is expected to vote on the Banking Bill, S. 2155— officially known as the Economic Growth, Regulatory Relief, and Consumer Protection Act— this week.

“While we have made great strides in reviving our economy through curbing overzealous regulation and cutting taxes, lasting prosperity will escape us if we do not hold the enabler of big government and our astronomical national debt accountable. It’s time for the Senate to side with the American people by removing the shackles on congressional oversight and lifting the Fed’s veil of secrecy. It’s time for us to pass Audit the Fed,” Paul said in his press release.

Passage of the Federal Reserve Transparency Act (S. 16), commonly referred to as Audit the Fed legislation, would require the nonpartisan, independent Government Accountability Office (GAO) to conduct a thorough audit of the Federal Reserve’s Board of Governors and reserve banks within one year of the bill’s passage and to report back to Congress within 90 days of completing the audit.

Paul remains steadfast in his commitment to this legislation that he and his father, former Rep. Ron Paul (R-TX), worked for years to pass, with the intent to stop the Federal Reserve’s “unchecked” and “arguably unconstitutional” meddling in the free market economy.

[RELATED: Truth in Media: 100 Years of the Federal Reserve]

Senator Paul’s 2016 Federal Reserve Transparency Act received nearly unanimous Republican support, in addition to support from Sen. Bernie Sanders (I-VT) and Sen. Tammy Baldwin (D-WI). Ultimately, the bill fell short of the required 60 votes for cloture after Senate Democrats leadership shot it down.

In January 2017, Paul reintroduced the Federal Reserve Transparency Act (S. 16), widely known as “Audit the Fed”. Appearing on Fox New with Tucker Carlson on February 7th, Paul explained why it is important for Congress to scrutinize the Federal Reserve’s monetary policy.

“The main lobby against auditing the Fed is the Fed,” Paul said. When Carlson asked what the major arguments against auditing the Federal Reserve would be, Paul cautioned:

“Some see that the Fed pays for this enormous debt and they love big government, and they know we have to have big debt for big government, and they have to pay for it, so they don’t want to mess with the Fed because right now it is able to accommodate this enormous debt.”

“The reason I want oversight is people get hurt in the downturn,” Paul continued. “So in 2008, when the housing market went bust, I blamed that on the Federal Reserve. We’re right in the middle of another boom. Anybody seen the stock market lately? It is a boom, just like the real estate boom of 2008, and it will come to an end. I wish I knew exactly when, so I could give your viewers some investment advice, but it will end. There will be a correction. We have a huge bubble in the stock market created by easy money, free money, everybody has it. Free money! Federal Reserve will hand you bouquets of money. But there will be repercussions, and that will be the downturn. There will be a response or reaction to all of this extra money.”

On the prospect of Trump signing the legislation if it were to make it through Congress, Paul said, “We’ve talked about Audit the Fed before and the fact that he supported it during his campaign. I think he will sign Audit the Fed if we can get it to him. The hardest part that we have to overcome is the institution of the Fed itself. The biggest lobbyist on Capitol Hill against auditing the Fed is the Fed.”

“I think it always has a chance of passing, but the hardest part is actually getting a vote on things,” Paul told Reason in an interview. “You never know unless you try.”



Roll Call: How U.S. Senators Voted on Auditing the Fed

The Federal Reserve Transparency Act of 2015 failed to advance on Tuesday. While the Senate voted 53-44 in favor of the bill, sixty votes were required for the bill to move forward. The full roll call showing how each U.S. Senator voted can be seen below.

YEA: 53

Alexander (R-TN)
Ayotte (R-NH)
Baldwin (D-WI)
Barrasso (R-WY)
Blunt (R-MO)
Boozman (R-AR)
Burr (R-NC)
Capito (R-WV)
Cassidy (R-LA)
Cochran (R-MS)
Collins (R-ME)
Cornyn (R-TX)
Cotton (R-AR)
Crapo (R-ID)
Daines (R-MT)
Enzi (R-WY)
Ernst (R-IA)
Fischer (R-NE)
Flake (R-AZ)
Gardner (R-CO)
Graham (R-SC)
Grassley (R-IA)
Hatch (R-UT)
Heller (R-NV)
Hoeven (R-ND)
Inhofe (R-OK)
Isakson (R-GA)
Johnson (R-WI)
Kirk (R-IL)
Lankford (R-OK)
Lee (R-UT)
McCain (R-AZ)
McConnell (R-KY)
Moran (R-KS)
Murkowski (R-AK)
Paul (R-KY)
Perdue (R-GA)
Portman (R-OH)
Risch (R-ID)
Roberts (R-KS)
Rounds (R-SD)
Rubio (R-FL)
Sanders (I-VT)
Sasse (R-NE)
Scott (R-SC)
Sessions (R-AL)
Shelby (R-AL)
Sullivan (R-AK)
Thune (R-SD)
Tillis (R-NC)
Toomey (R-PA)
Vitter (R-LA)
Wicker (R-MS)

NAY: 44

Bennet (D-CO)
Blumenthal (D-CT)
Booker (D-NJ)
Boxer (D-CA)
Brown (D-OH)
Cantwell (D-WA)
Cardin (D-MD)
Carper (D-DE)
Casey (D-PA)
Coons (D-DE)
Corker (R-TN)
Donnelly (D-IN)
Durbin (D-IL)
Feinstein (D-CA)
Gillibrand (D-NY)
Heinrich (D-NM)
Heitkamp (D-ND)
Hirono (D-HI)
Kaine (D-VA)
King (I-ME)
Klobuchar (D-MN)
Leahy (D-VT)
Manchin (D-WV)
Markey (D-MA)
McCaskill (D-MO)
Menendez (D-NJ)
Merkley (D-OR)
Mikulski (D-MD)
Murphy (D-CT)
Murray (D-WA)
Nelson (D-FL)
Peters (D-MI)
Reed (D-RI)
Reid (D-NV)
Schatz (D-HI)
Schumer (D-NY)
Shaheen (D-NH)
Stabenow (D-MI)
Tester (D-MT)
Udall (D-NM)
Warner (D-VA)
Warren (D-MA)
Whitehouse (D-RI)
Wyden (D-OR)

Not Voting: 3
Coats (R-IN)
Cruz (R-TX)
Franken (D-MN)

Sen. Rand Paul Re-Introduces Federal Reserve Audit Bill

Senator Rand Paul (R-KY) has re-introduced his “Audit The Fed” bill, titled the Federal Reserve Transparency Act of 2015. A press release from Paul states:

Known widely as “Audit the Fed,” the bill calls to eliminate restrictions on Government Accountability Office (GAO) audits of the Federal Reserve and mandate that the Federal Reserve’s credit facilities, securities purchases, and quantitative easing activities would be subject to Congressional oversight.

“A complete and thorough audit of the Fed will finally allow the American people to know exactly how their money is being spent by Washington,” Paul said in his statement. “The Fed’s currently operates under a cloak of secrecy and it has gone on for too long. The American people have a right to know what the Federal Reserve is doing with our nation’s money supply. The time to act is now.”

The bill has 30 co-sponsors, including Sen. Ted Cruz (R-TX), Sen. Marco Rubio (R-FL) and new Senate Majority Leader Mitch McConnell (R-KY).

With Republicans now in control of both the House and the Senate, Paul’s bill has been reported to have a greater likelihood of gaining approval, although it is unlikely that President Obama would sign it. Last month, Federal Reserve Chairwoman Janet Yellen said she would “forcefully” challenge efforts to pass Audit the Fed legislation.

“It’s important to make sure that we can make the decisions we think are best free of short-run political interference with respect to monetary policy,” Yellen said on December 17th of last year. “History shows not only in the United States, but around the world, that central bank independence promotes better economic performance.”

The Federal Reserve Transparency Act of 2015 can be read here.


Ron Paul’s Audit the Fed Bill Prevails in the House

Since its establishment in 1913, a growing number of Americans have become suspicious of the Federal Reserve. The private central bank, which has been given control over the nation’s supply of currency, is seen as a shadowy banking cartel that “prints” money and issues it to Wall Street’s wealthiest elites, leaving consumers, senior citizens on fixed incomes, and middle class families to pay for its schemes through inflation and a subsequent loss in buying power. Former Congressman and libertarian icon Ron Paul made auditing and ending the Federal Reserve a centerpiece of his influential career. No other US politician has done more to expose the complicated issue of monetary policy to the general public.

Paul’s quest to take down the Fed reached a climax in 2012, when he led a bipartisan majority in the House of Representatives (327 votes in favor and 98 against) to pass the Federal Reserve Transparency Act of 2012, which would have required a full audit of the Federal Reserve if it had passed the Senate. However, Senate Majority Leader Harry Reid refused to bring the bill before the Senate for a vote, causing it to die on the vine. Paul’s push led senators to include a partial audit of the Fed in the Dodd–Frank Wall Street Reform and Consumer Protection Act, which already exposed the fact that the embattled central bank issued conflict of interest waivers to its employees and contractors so that they could invest in companies that were receiving portions of the $16 trillion in bailouts issued by the Fed.

Yesterday, according to Reuters, a revived version of Paul’s bill, re-introduced by Rep. Paul Broun (R-GA), passed the House by a vote of 333 to 92, a stronger majority than the first time it passed. The Federal Reserve Transparency Act of 2013 (H.R. 25), as it is called, now faces a steep hurdle in the Senate, where Harry Reid will likely attempt to prevent senators from voting on it. The Senate version, S. 209, was introduced by Senator Rand Paul (R-KY) and has 30 cosponsors.

If the bill were to become law, it would require that the Federal Reserve Board and the 12 Federal Reserve Banks submit to a full audit by the Government Accountability Office within 12 months. A report to Congress would be due within 90 days of the audit’s completion. It would also repeal limitations that prevent Congress from overseeing Fed decisions related to monetary policy and require the GAO to examine the Fed’s response to the foreclosure crisis back in 2009 and 2010.

In the above-embedded video, Rep. Paul Broun argues in favor of the bill to audit the Fed, saying, “Over the century since its inception in 1913, the Federal Reserve has controlled our nation’s monetary policy and, therefore, our economy under a veil of secrecy. Throughout these last 100 years, Congress has only exercised a relatively small degree of oversight of the Federal Reserve. This lack of accountability has led to grievous consequences, and this must end.”

106 Democrats and one Republican, Rep. John Campbell, voted against the bill. Rep. Elijah Cummings (D-MD) took to the floor to argue against the Federal Reserve Transparency Act. Critics of the audit the Fed movement allege that such oversight and transparency could lead to a politicization of monetary policy.

The Campaign for Liberty, an organization started by Ron Paul, is calling for citizens to contact their senators in a push to pressure Harry Reid, who claimed to support an audit of the Fed earlier in his political career, to bring S. 209 before the Senate for a vote.

Senator Ted Cruz: “Audit The Fed”

Screenshot of Senator Cruz’s Facebook Page

Senator Rand Paul (R-KY) has been leading the charge in the US Senate to garner support for a full audit of the Federal Reserve. In fact, Paul has threatened to filibuster the Senate confirmation of Federal Reserve Chairman nominee Janet Yellen unless he gets a vote on his bill to audit the Federal Reserve.

Yellen says no way to a Federal Reserve audit.

Paul and Senator Ted Cruz (R-TX) have latched arms on many occasion, and the two are now teaming up for a strong push to audit the Federal Reserve. Cruz took to his Senate Facebook page to make the announcement. Typical of the new blood in the US Senate, he used a hashtag. #AuditTheFed, Cruz wrote while announcing his teaming up with Paul.

According to the Houston Chronicle, Cruz is on board. “I agree with Rand Paul,” wrote Cruz in a statement Wednesday. “We need to bring transparency to the Fed, so the American people can understand the scope and consequences of its policies.”

The legislation would not only allow for a full audit of the Federal Reserve, but also fully eliminate the current restrictions on auditing the private bank. The Federal Reserve Transparency Act of 2013 currently has 27 co-sponsors in the US Senate. These sponsors include Senate Minority Leader Mitch McConnell (R-KY) & Senator Marc Begich (D-Alaska).

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