On the recordJuly 24, 2012
Before the financial crisis, the Fed's lending to the financial system was minimal, and monetary policy was limited; but since 2008, they've tripled their balance sheet and transacted nearly $16 trillion in loans. Clearly, Congress has delegated monetary policy to the Fed; and I, for one, am not advocating that we abolish the Fed. But Congress retains oversight responsibility, and Congress should insist on an accurate accounting of the Fed so Members of Congress can better understand monetary policy. Our colleague, Ron Paul, was instrumental in getting an audit of the Fed's emergency activities during the financial crisis, but restrictions remain in place on examining monetary policy actions such as quantitative easing and assisting failing banks in Europe. When the Fed's cumulative lending hits the size and scope to be greater than the entire GDP of the United States, it's past time for Congress to insist on transparency.
