Yesterday, Chair of the U.S. Federal Reserve, Janet Yellen, announced that they are raising interest rates for the first time in almost a decade. While it remains to be seen how well unelected bureaucrats in Washington can maneuver monetary policy back towards normal interest rates, there is no doubt in my mind that we need to reform the Fed to make it more transparent and accountable to the American people.
Two improvements that must be made law are “rule based monetary policy” which allows market participants to more accurately anticipate the Feds monetary policy actions and Ron Paul’s Audit the Fed legislation which lets the American people know to whom the Fed is lending money.
Luckily, the House Financial Services Committee has been diligently working on these initiatives. On November 19, 2015, the House of Representatives passed the Fed Oversight Reform and Modernization Act (H.R. 3189) by a bipartisan vote of 241- 185, which includes both of these measures.
It is my hope that that the Senate considers H.R. 3189 at their earliest convenience and that one day it is enacted into law.
To watch Representative Emmer speak on the House Floor on the Fed Oversight and Modernization Act, click on the video below.