Rep. Ron Paul (R-Texas) is going to get his congressional hearing on Federal Reserve reform, with a little help from his friends in the House.
The Financial Services Subcommittee on Domestic Monetary Policy and Technology, which Paul chairs, will hold a hearing Tuesday morning to examine six legislative proposals that either reform or abolish the Federal Reserve System.
The six bills are sponsored by a bi-partisan cast of characters that include Paul, Rep. Dennis Kucinich (D-Ohio), Rep. Barney Frank (D-Mass.), Rep. Mike Pence (R-Ind.), Rep. Marcy Kaptur (D-Ohio) and Rep. Kevin Brady (R-Texas).
“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,” Paul said.
“One hundred years is far too long for Congress to have taken a hands-off approach,” the congressman and presidential candidate said. “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, the financial crisis of 2008-2009 and publicity from Paul has escalated calls for reform.
The Federal Reserve responded to the financial crisis with unconventional monetary easing, leading some to claim it 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.