Capitol Report: Rand Paul says audit bill is first step toward more say on monetary policy
U.S. Senator Rand Paul says the audit-the-Fed legislation is a first step toward more control over the central bank.
WASHINGTON (MarketWatch) A bill to audit the Federal Reserves monetary policy is just the first step in Congress taking greater control over monetary policy, its main supporter said on Thursday.
The comment, made in a Facebook question-and-answer session by Sen. Rand Paul, feeds into the concerns by opponents of the legislation that the ultimate goal is to weaken the independence of the central bank.
Paul, the Kentucky Republican whos weighing a presidential bid,answered a number of questions on his Facebook page.
When asked why a private corporation runs the monetary policy, Paul replied: Congress created the Fed over 100 years ago but in the years since has abdicated too much power to it. This bill is the first step in reclaiming their Constitutional power.
Also see: A look at whats behind the Audit the Fed legislation
He said popular support for the legislation which would allow the Government Accountability Office to review monetary policy has grown since the bank bailouts.
Asked separately what he wants to accomplish with such an audit, Paul replied: Transparency and to give Congress the ability to reassert its Constitutional power over monetary policy.
Federal Reserve officials have mounted a public campaign against the legislation, spearheaded by Gov. Jerome Powell, a Republican, and Dallas Fed President Richard Fisher, who was the Democratic nominee in a Texas senatorial race, but has views more commonly associated with conservatives.
Fisher this week said those who support the audit the Fed legislation are sheep in wolves clothing.
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Capitol Report: Rand Paul says audit bill is first step toward more say on monetary policy