The Financial Services Subcommittee on Domestic Monetary Policy and Technology, chaired by Rep. Ron Paul, held hearing Tuesday to examine six legislative proposals that either reform or abolish the Federal Reserve System.
“More and more people are beginning to understand just how destructive the Federal Reserve's monetary policy has been. I hope that this hearing will kick start a serious discussion on the need to rein in the Fed,” said Chairman Paul. “100 years is far too long for Congress to have taken a hands-off approach. The Fed continues to reward Wall Street banks while destroying the dollar’s purchasing power and driving up the cost of living for average Americans. This reckless behavior must come to an end.”
Calls for reforming various aspects of the Federal Reserve System have existed since its creation in 1913. However, with the onset of the financial crisis of 2008-2009 and during the prolonged recession, calls for reform have escalated.
The Federal Reserve responded to the financial crisis with unconventional monetary easing, leading some to claim the Federal Reserve attempted to do too much to stimulate economic growth and set the stage for sustained inflation when the economy recovers. Slow economic growth, however, has led others to argue the Federal Reserve has not done enough and must be more accommodative in its conduct of monetary policy.
The six proposals that will be discussed by the Subcommittee on Tuesday are:
· H.R. 245, introduced by Rep. Mike Pence
· H.R. 1094, the Federal Reserve Board Abolition Act, introduced by Rep. Paul
· H.R. 1401, the Democratizing the Federal Reserve System Act, introduced by Rep. Marcy Kaptur
· H.R. 2990, the National Emergency Employment Defense Act, introduced by Rep. Dennis Kucinich
· H.R. 3428, introduced by Rep. Barney Frank
· H.R. 4180, the Sound Dollar Act, introduced by Rep. Kevin Brady
The Subcommittee’s hearing was held Tuesday, May 8 at 10 a.m. in room 2128 Rayburn House Office Building.