Letter from Senator Alexander Regarding My Request For Him to Cosign Audit the Fed in the SenateSubmitted by doorkeeperJd on Thu, 11/01/2012 - 21:49
Thanks very much for getting in touch with me and letting me know what’s on your mind regarding the Federal Reserve System.
In 1913, Congress created the Federal Reserve System to serve as the central bank of the United States in order to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve does not run on taxpayer dollars from Congress and returns any profits to the U.S. Treasury – including nearly $35 billion in 2008. However, by law the Federal Reserve is accountable to Congress. Members of its Board of Governors are confirmed by the U.S. Senate, and Federal Reserve officials must appear before congressional committees several times each year. In addition, the Federal Reserve must issue annual reports and undergo regular audits that cover most of its activities.
I don’t believe that Congress should try to micromanage the Federal Reserve or weight it down with overly burdensome regulations. It was set up to be independent of the political trends in Washington, and it should remain that way. That’s why I have voted against proposals that would go too far in limiting the Fed’s independence. However, in order to provide Americans with more information about the extraordinary steps the Fed has taken in responding to the nation’s economic crisis, I voted for an amendment to provide for an additional audit of the Federal Reserve Bank. The Fed would now be required to post information online about lending programs that have been used during this recession and include the names of entities receiving aid, how much aid was received, a repayment plan for the aid, and the reasons aid was given.
I appreciate your taking the time to let me know where you stand. I’ll be sure to keep your comments in mind when the Federal Reserve is discussed and debated in Washington and in Tennessee.