Kucinich: Fed Deserves Audit First, New Authority Second

Hat tip: Dandelion Salad
Congressman Dennis Kucinich
Washington, Jun 17, 2009

Congressman Dennis Kucinich D-OH today made the following statement in response to President Obama’s announcement of new financial regulations that includes increasing the oversight authority of the Federal Reserve the Fed:

“Before Congress gives the Fed any new authority, we must thoroughly examine the Fed’s response to our current economic crisis.

“Since August 2007 the Fed has intervened in the economy in an extraordinary way, as a result ballooning their balance sheet from $847 billion to more than $2 trillion. Yet, we still don’t know what the Fed has done or who got the money. That is why I introduced the bipartisan HR 2424, which would grant the GAO the authority to audit the Fed’s response to our nation’s economic crisis, a response that has dwarfed the $700 billion TARP program by more than 2 to 1.

“Before we grant the Fed any new authority, we must demand greater transparency from the Fed; an earnest and open audit of the Federal Reserve’s response to the economic crisis would be a significant step in the right direction. We can’t continue to let the Fed operate within a black box.”

Kucinich used the text of HR 2424 in an amendment to the Government Accountability Office (GAO) Improvement Act of 2009 during its markup in the Oversight and Government Reform Committee. The amendment was adopted unanimously. The Oversight and Government Reform Committee is charged with overseeing government policy and often relies on the GAO.

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