Response from Senator Hutchinson on Audit the Fed

[spudea]

Here is her email response:

Dear Friend:

Thank you for contacting me regarding the Federal Reserve System. I welcome your thoughts and comments.

Since its inception in 1913, the Federal Reserve System has served an important role in our financial system. Recently, to address our nation’s current economic downturn, the Federal Reserve system has taken extraordinary and unprecedented actions that have resulted in a dramatic expansion of its balance sheet. As a member of the Senate Committee on Banking, Housing, and Urban Affairs, which has oversight of our nation’s financial system, I have expressed my concerns to Federal Reserve Board Chairman Ben Bernanke about the risks of these actions, especially with regard to potential future inflation. I am troubled by the lack of transparency and by news of the many newly created Federal Reserve System programs.

I am a co-sponsor of S. 604, the Federal Reserve Sunshine Act of 2009. Introduced by Senator Bernard Sanders (I-VT) on March 16, 2009, this important legislation would give the Government Accountability Office (GAO) authority to audit every item on the Federal Reserve's balance sheet. As a result, S. 604 would reform the manner in which the Board of Governors of the Federal Reserve System is audited and the manner in which such audits are reported.

The Federal Reserve Sunshine Act has been referred to the Banking Committee. As Congress considers S. 604 and other legislation to stabilize our financial system and improve the disclosure and accountability of financial regulatory authorities, you may be certain I will keep your views in mind.

I appreciate hearing from you, and I hope you will not hesitate to contact me on any issue that is important to you.

Sincerely,
Kay Bailey Hutchison
United States Senator

It was my understanding that the sanders amendment is the compromise bill that does not audit the entire Fed Reserve balance sheet, but only the special lending programs created during the financial crisis.

If i'm right, what do you suggest that I send back to her?

[Arklatex]

Sanders did introduce Paul's bill in the senate. He recently introduced or supported another recently.. i haven't been following but I heard something to that effect I believe.

[Legend1104]

That is funny. I contacted my Senator (Wicker) and he sent me something very similar.

Thank you for contacting me regarding the Federal Reserve. I am glad to have the benefit of your views on this issue.



In 1913, Congress created the Federal Reserve system to serve as the central bank for the United States. The Federal Reserve determines the nation's monetary policy. The system comprises three major components: the Board of Governors; a network of 12 Federal Reserve Banks; and member banks. Congress created the Federal Reserve as an independent agency to enable the central bank to carry out its responsibilities protected from political pressure. The Federal Reserve's monetary policy involves increasing and decreasing the supply of money, which is done primarily by altering interest rates to achieve long-term economic objectives. The primary objective of the Federal Reserve is to ensure that money and credit grow sufficiently to encourage economic expansion without inflation. When economic problems arise, attention can quickly focus on the Federal Reserve's policy decisions.



Recently, some individuals have suggested that the Federal Reserve system should be altered due to the problems revealed in our current economic troubles. Senator Bernard Sanders (I-VT) introduced the Federal Reserve Sunshine Act (S.604) in the Senate on March 16, 2009. I am a cosponsor of this bill that would audit the Federal Reserve. Currently, the Senate Banking, Housing, and Urban Affairs Committee is considering this legislation.



Be assured I will keep your views in mind as Congress considers legislation affecting the Federal Reserve. Please do not hesitate to contact me if I can ever assist you.



With best wishes, I am



Sincerely yours,

Roger F.Wicker
U.S. Senate