Federal Reserve Transparency Act

In the past year, we have had overwhelming intervention by the federal government in our financial system. The American people are tired of Washington’s bailout obsession and have watched the Federal Reserve’s balance sheet grow rapidly.

While the Federal Reserve has provided more information to the public through new reports such as these monthly reports, there are certain areas in which the law currently prohibits a full audit of Federal Reserve actions.

For that reason, I am a co-sponsor of H.R. 1207, the Federal Reserve Transparency Act. If enacted, this legislation would allow the Government Accountability Office (GAO) to conduct a full audit of all activities of the Federal Reserve Board and regional Reserve Banks. More openness in the Fed’s operations will enhance public understanding of the institution and foster greater accountability for its decisions, which affect the economic well-being of every American.

As Congress continues to debate financial regulatory reform, I will continue to support common-sense legislation that will stop bailouts, end the government’s practice of picking winners and losers and restore market discipline. In addition to supporting Congressman Paul’s legislation, I also support the House Republican Regulatory Reform Plan. The Republican alternative includes other reforms reign in the expansion of the Federal Reserve’s authority, including provisions that will prevent the Fed from bailing out individual firms, as was done with AIG and Bear Stearns, in the future.