Don’t you want to know how the federal government spends and leverages your taxpayer dollars? Odds are that the answer is a resounding “YES.” However, the Federal Reserve, the nation’s central bank and an independent federal agency, has been subject to very little scrutiny. That shouldn’t be the case, especially given that the Federal Reserve, or the Fed, is responsible for monetary policy decisions that affect every American.
Following the recent financial crisis, the Fed has continued to expand its powers and a number of questions about a lack of transparency regarding various transactions have come to light. When the Fed acts willy-nilly to implement new policies it can lead to inflation for hard working Americans trying to make ends meet or more economic uncertainty for folks trying to plan for the future. The Fed’s budget is not subject to congressional oversight in the same way as many other government agencies. They are funded by fees and income generated by their own securities, but that doesn’t mean they should be able to act behind a dark curtain. The Fed has a unique role in our financial system and the American people deserve more transparency in its decision making process since its policies have the ability to impact all of us.
That’s why I am an original cosponsor of the Federal Reserve Transparency Act, a bipartisan bill better known as Audit the Fed. While a portion of the Fed’s work is already audited, I have long supported a full audit because we need a greater accounting of the Federal Reserve Board and the Federal Reserve Banks.
In November, I also voted in favor of the Fed Oversight and Modernization Act, or FORM Act, in the House of Representatives. In addition to requiring an audit of the Fed, the FORM Act requires the Fed to transparently communicate its monetary policy decisions to the American people and conduct a cost-benefit analysis for all of its new regulations. It only makes sense that we know if any regulations will result in excessive new burdens on small businesses and our economy.
A key part of good government is accountability to the taxpayers. The Fed should not be excluded from this accountability. All too often we see the results of this lack of accountability. You need look no further than the IRS targeting scandal, abysmal wait times and conditions at veterans’ health care facilities, the Fast and Furious debacle, and even Hillary Clinton’s emails to see just what can happen when government officials and agencies are not held accountable. The American people aren’t customers of the federal government, they’re owners – and they should be treated as such.
Sound monetary policy is critical to the success of our economy. The Federal Reserve must be held accountable to the American people, and I’ll continue working to shine more light on this agency.
