Response from Harry ReidSubmitted by NP4RonPaul on Fri, 09/07/2012 - 17:41
I wrote to Harry Reid asking him to support the Audit the Fed Bill. The following was his response.
Dear Ms. Thao:
Thank you for contacting me. I appreciate hearing from you and share your support for increased transparency in the Federal Reserve.
As our nation’s central bank, the Federal Reserve plays a key role in maintaining market liquidity in a global economy, and I understand concerns over some of the Federal Reserve’s actions to stabilize the economy. Although the Federal Reserve was established in 1913 as a private lending institution to protect it from political and private pressures, its actions are subject to congressional oversight. Please be assured that I remain committed to doing all I can to ensure that the Federal Reserve continues to serve the nation and fulfill the broad goals of price stability and full employment.
I have noted your support for S. 202, Federal Reserve Transparency Act of 2011, which was introduced by Senator Rand Paul (R-TN) on January 26, 2011. This legislation seeks to abolish the Board of Governors of the Federal Reserve System and remove all Federal restrictions on auditing the central bank. S. 202 was referred to the Senate Banking, Housing, and Urban Affairs for further review. I will certainly keep your thoughts in mind should I have the opportunity to consider this or similar legislation before the full Senate.
In the meantime, you may be interested to learn that during Wall Street reform in the 111th Congress, I was pleased to support an amendment offered by Senator Bernie Sanders (I-VT) that requires the Government Accountability Office to audit the Federal Reserve’s emergency lending programs. In addition, Title XI of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) contains provisions intended to enhance transparency and accountability related to the Federal Reserve System’s emergency lending activities. I supported this measure that enforces transparency in account transactions while maintaining the independence of the Federal Reserve’s policy practices.
As an elected official, I am grateful for the public trust that the people of Nevada have assigned me and remain committed to accountability and transparency in Washington. Again, thank you for taking the time to share your thoughts with me. I will be mindful of your views as I continue my work on behalf of the people of Nevada.
My best wishes to you.
United States Senator