Wednesday, December 23, 2009

Audit The Fed : Response From Senator

I had sent a letter supporting the bill to "Audit the Fed" to both my congressman and senator. I had received a response from the congressman very quickly. It took a while for the senator to respond, but it sure did come.

It doesn't look like Senator Feinstein supports this bill.
Dear Mr. Avachat:

Thank you for contacting me to express support for legislation to increase transparency at the Federal Reserve. I appreciate your interest in monetary policy and welcome the opportunity to respond.

The Federal Reserve was originally established in response to the country's need for a sound and independent central bank to manage decisions relating to U.S. monetary policy. I understand your concern with some of the unprecedented steps that the Federal Reserve has taken recently to ease the flow of credit and stabilize financial markets.

On March 16, 2009, Senator Bernard Sanders (I-VT) introduced the "Federal Reserve Sunshine Act of 2009" (S. 604), which would require the U.S. Comptroller General to audit the Federal Reserve System before the end of 2010. This bill has been referred to the Senate Banking, Housing, and Urban Affairs Committee. Representative Ron Paul (R-TX) has introduced a similar bill (H.R. 1207) in the House of Representatives. Please know that I will keep your support for this legislation in mind should it come before the full Senate.

While I recognize the importance of accountability in the operations of the Federal Reserve, I strongly believe that monetary decisions should be made independent of political influence or motives. You may be interested to learn that I supported an amendment to the Congressional Budget Resolution (S. Con. Res. 13) offered by Senator Sanders requiring the Federal Reserve to disclose how it has disbursed emergency economic assistance to financial institutions during this severe economic crisis. Be assured that I am carefully monitoring the actions taken by the Federal Reserve to help stimulate our economy and unfreeze credit for businesses and homeowners.
Once again, thank you for writing. I hope that you will continue to share your views with me. If I can be of any further assistance, please contact my Washington, D.C. office at (202) 224-3841. Best regards.

      Also, may I take this opportunity to wish you a happy and healthy holiday season. And may 2010 be a good year for us all.

Sincerely yours, Dianne Feinstein
        United States Senator

Further information about my position on issues of concern to California and the Nation are available at my website You can also receive electronic e-mail updates by subscribing to my e-mail list at

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