Safe to say Sen. Paul owns a copy or two of this tome.
It’s safe to say that if the U.S. Federal Board added electing the president to its rate-setting and other monetary-policy duties, Rand Paul pack it in right now. Three—count’em, three—top Fed guys chose yesterday to express their displeasure with Paul’s “Audit the Fed” bill. You know, the one that would increase congressional oversight over the central bank without actually defining what it means by the word “audit.” And not just any three top Fed guy’s: Two of the hawkiesthawks Paul could ever dream of, and the Fed’s only Republican governor, all of whom were too polite to just come out and say that the bill’s author is a tin-foil-hat type who secretly (or not-so-secretly) would like to abolish their jobs and reinstate the gold standard. But just.
The bill, known as “Audit the Fed”, “risks inserting the Congress directly into monetary policy decisionmaking, reversing decades of deliberate effort by the Congress to insulate the Fed from political pressure in carrying out its day-to-day duties,” Mr. Powell said in a speech at Catholic University of America in Washington….
The bill is “a stepping stone to abolishing the Fed,” Powell said during a question-and-answer session following the speech, noting that some of the bill’s advocates have expressed support for eliminating the central bank….
“There is nothing, other than really having TV cameras in the Fed board room, that would be enhanced in terms of transparency,” he added.
“I respect the gentleman from Kentucky, but he’s wrong,” the central banker said. Mr. Fisher said the audit bill was really about “interfering with the making of monetary policy,” and he believes nothing good can come of that. Most economists agree independent central banks make policy better because they are insulated from public opinion to a degree, and can make the difficult choices needed to control inflation.
Central Banks Bash ‘Audit the Fed’ Bill [WSJ]
Powell: Congressional Proposals to Audit the Fed ‘Misguided’ [WSJ Real Time Economics blog]
Fisher Bashes Fed Audit Bill in Television Interview [WSJ Real Time Economics blog]