As scrutiny of the Federal Reserve System and public outrage over its actions continue to build, lawmakers on both sides of the aisle are working on proposals that would supposedly rein in the Fed or at least change the way it operates. And a new measure aims to tackle some of the issues head on.
Joint Economic Committee Vice Chairman Rep. Kevin Brady (R-Texas, photo) is preparing to introduce the latest effort to alter the nation’s monetary system in Congress later this week. Known as the “Sound Dollar Act,” the legislation would impose some major reforms on the way America’s powerful central bank does business.
“If we want America to remain the strongest economy in the world, the Fed needs a clear, proven direction from Congress,” Rep. Brady said. “A sound dollar creates certainty for the free market, protects against inflation and deflation and is the one factor that monetary policy truly impacts over the long term.”
During the financial crisis, the Fed took a range of highly controversial actions including purchasing trillions of dollars in assets and well over $1 trillion of mortgage-backed securities, manipulating markets, bailing out foreign banks, and much more. Rep. Brady’s bill would seek to address a few of the policies and actions that caused the greatest uproar over the last few years.
The wild spending spree by the Fed saw trillions of newly created dollars used to bail out mega-banks and financial institutions all around the world without any oversight. And experts have been sounding the alarm about the controversial measures for years, warning that all the new currency would eventually result in serious price inflation — possibly even hyperinflation.
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