Comment: Menendez (NJ) had this to say,,,

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Menendez (NJ) had this to say,,,

"Thank you for contacting me to express your support for S. 202 and H.R. 459, the Federal Reserve Transparency Act of 2011. Your opinion is very important to me, and I appreciate the opportunity to respond to you on this critical issue.

As you are well aware, S. 202 and H.R. 459 were introduced during the 112th Congress and would require the Government Accountability Office (GAO) to conduct a one-time independent audit of the Federal Reserve and require the Federal Reserve to release the names of the recipients of more than $2 trillion in taxpayer-backed assistance. H.R. 459 passed the House in July 2012, but S. 202 has yet to come to a vote before the U.S. Senate.

You will be pleased to know that I voted in favor of S. Amdt. #3738 to the Dodd-Frank Wall Street Reform and Consumer Protection Act, which strongly passed the United States Senate by a vote of 96-0. That amendment subjected the Federal Reserve to an audit by the Government Accountability Office and required the Federal Reserve to release the names of the recipients of Federal Reserve assistance.

In December 2010, the results of that audit were released and can be found here[1]. Of note, the report says that the Federal Reserve's efforts "achieved their intended purposes with no loss to taxpayers." While I supported taking temporary and aggressive action to avoid economic catastrophe and what could have been another Great Depression, I also believe it is important that we put in place adequate safeguards and accountability measures to ensure that funds are not wasted by the Federal Reserve or any other government body. To that end, I am pleased to see that this audit was completed so that New Jerseyans can fully examine the actions taken by the Federal Reserve and judge for themselves.

The goals[2] of monetary policy are spelled out in the Federal Reserve Act, which specifies that the Board of Governors and the Federal Open Market Committee should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates." In keeping with these objectives, I believe it is important to preserve the independence of monetary policymakers, especially during a time when our economy is recovering. Numerous studies have shown the central banks achieve better outcomes for the country on these objectives when monetary policy is not controlled by elected officials. This concern has to be balanced against the need for transparency.

The Federal Reserve Transparency Act has yet to come to a vote before the U.S. Senate, but please rest assured that I will certainly keep your views in mind if it does come to a vote as we move forward.

Again, thank you sharing your thoughts with me. Please do not hesitate to contact me if I can be of further assistance. I invite you to visit my website (http://menendez.senate.gov) to learn more about how I am standing up for New Jersey families in the United States Senate."

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