Sellout NY Senator responds to my "Audit the Fed" letter

October 22, 2009

Dear Mr. [my surname],

Thank you for taking the time to contact me about increasing transparency at the Federal Reserve. Throughout the financial crisis of last fall and the ongoing economic slowdown, the Federal Reserve has lent substantial sums of money to help prevent a further economic meltdown using emergency powers established by Congress after the Great Depression. Throughout my time in Congress, I have worked to promote honest and open government. Last fall, I opposed the Troubled Asset Relief Program (TARP) because of its lack of transparency and oversight provisions. As a result, I share your belief that the extraordinary actions taken by the Federal Reserve merit additional scrutiny from Congress and will work to enhance transparency and oversight as part of the financial regulatory reform package currently being drafted.

Currently, the only component of the Federal Reserve which is not regularly investigated by the Government Accountability Office is its monetary policy function. This exemption was established to address concerns that Congress could use these investigations to pressure the Federal Reserve into taking actions that could drive inflation, causing dramatic increases in the costs of basic goods and services and undermining the Fed's primary objective of monetary stability.

I believe it is critically important that we continue to empower the Federal Reserve to prevent inflation while at the same time providing for a full audit of the Federal Reserve system. As Congress begins to examine how to restructure our financial system, I believe that we must include reforms to provide greater transparency at the Federal Reserve while continuing to prevent inflation and ensure economic stability. I will be working with my colleagues on the Senate Banking Committee to ensure that any financial reform package includes these key principles.

Thank you again for writing to express your concerns and I hope that you keep in touch with my office regarding future legislation and concerns you may have. For more information on this and other important issues, please visit my website at http://[ surname].senate.gov and sign up for my e-newsletter.

Sincerely yours,

[Senator 'K.G.']
United States Senator