Audit the Fed!

For too long, the Federal Reserve Board has acted under a cloak of secrecy. Now, we have a great opportunity to lift the veil on this powerful, unelected agency that controls our money and our financial futures. Senator Rand Paul has introduced and "fast-tracked" S. 2232, the Federal Reserve Transparency Act of 2015.

Why is this important?

The Federal Reserve Board (The Fed) may have more influence on your life than any other part of the government. Yet it's completely independent of any genuine oversight. Congress can't even be sure it really knows what the Fed is doing. .

The Fed regulates banks, influences interest rates, and determines the size of our money supply through a complex process, called Open Market Operations, that involves buying and selling securities (mostly government debt). The Fed's policies determine the value of your money, the health of the economy, and the rates you pay to borrow.

  • The Fed's decision-making process is secret, using confidential information.
  • Minutes of these secret meetings aren't due until three weeks after decisions are announced.
  • Transcripts of meetings don't become available until five years later.
  • Aside from the Chair, Fed board members serve the longest terms of any federal bureaucrat (14 years), and they can't be fired for political reasons.
  • The Comptroller General, head of the Government Accountability Office, is legally prohibited from auditing the Fed's Open Market operations, and several other important Fed activities. (See our Background page.)
  • The Fed is part of the Federal Government, but acts without any of the regular checks and balances.

Some argue that this secrecy and independence are necessary to protect the Fed from partisan political influence. Their argument is reasonable, but it leaves the American people in the grip of a virtual economic dictatorship. And the economic consequences of Fed policies can be just as devastating as taxes, regulations, and even war . . .

  • Many economists, including Fed Chair Ben Bernanke, blame the Fed, in one way or another, for the Great Depression
  • Many also blame the Fed for harmful booms and busts
  • The Fed’s continued inflationary pumping cuts the value of your money, devastating savings and the well being of people on fixed incomes.

But you have absolutely no control, or even influence, over what the Fed does.

The money supply and interest rates are too important to be left to either politicians or unelected bureaucrats. Indeed, no mere human is competent to make such decisions. No one can possibly know what the "proper" level of money and credit should be at a given time. It's a matter of decentralized supply and demand, which only a free market can sort out, through the mechanisms of . . .

Auditing the Fed may pave the way to this outcome, by demonstrating the Fed's inherent incompetence. No wonder members of the Fed and their political friends continue to fight tooth and nail against any attempt at an audit.

But now we have another opportunity to demand such an audit! Sen. Rand Paul of Kentucky introduced the Federal Reserve Transparency Act of 2015 to expand congressional oversight of the Fed and give the Government Accountability Office the authority to review the its monetary policy decisions.

Use the form at right to send your elected representatives a letter about this issue. It's easy!

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Send a letter to Congress

We provide the first few words of the letter so that Congressional offices will see the most important point right at the start, and so that no one can hijack our system for another purpose. Here's the part we provide . . .

It's time to "Audit the Fed." You must PASS S. 2232 the Federal Reserve Transparency Act.
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