My senator contacted me today, regarding my call in support of Audit the Fed!Submitted by Drew D on Mon, 12/10/2012 - 16:25
Today I received a letter from my senator, John Thune (R) SD, regarding my call in support of the Audit the Fed legislation. Let me know what you think.
Thank you for contacting me about the Federal Reserve Bank. I appreciate hearing from you.
The Federal Reserve Bank, which conducts our nation's monetary policy, is considered an independent entity within the federal government. Although its day-to-day decisions do not need to be ratified by legislative or executive branch, it must follow the objectives of economic and financial policy established by Congress. You may be interested to know that the Government Accountability office (GAO) is currently able to audit many functions of the Federal Reserve. For the functions it is not able to audit, Congress maintains direct oversight authority through periodical reviews and may alter its responsibilities by statute. Furthermore, all excess funds derived from various policy actions and services performed by the Federal Reserve are returned to the United States Treasury.
I believe in order to properly account for taxpayer funds it is important that we get a clear picture of the operations of our central bank. I am pleased the financial regulatory reform legislation signed into law in July of 2010 included language to require a one-time audit of the Federal Reserve by the GAO with respect to the loans and financial assistance provided to institutions since December 1, 2007. The Federal Reserve must ow also share information with regard to what entities use their discount window and take part in the purchase or sale of assets. However, I do not believe it goes far enough in terms of transparency. Because of this, I supported a separate amendment. During Senate debate of financial regulatory reform that would have broadened the scope of the GAO audit and would have provided for additional audits in the future. Unfortunately, this amendment was defeated.
In addition, the Federal Reserve Transparency Act of 2011 (S. 202) was introduced on January 26, 2011, by Sen. Rand Paul (R-KY). I am a cosponsor of this legislation. If enacted, this bill would require the Comptroller General to conduct a full audit of the Federal Reserve System and the Federal Reserve banks and report this information to Congress. This bill is currently awaiting consideration by the Senate Banking Committee. As I continue my worn in Congress, I will be sure to keep your thoughts a d concerns about this issue in mind.
Kindest regards, John Thune
United States Senator"
Ok what do you think about Sen. Thune's response.