Congress Continues to try to Reign in Fed Authority
Recurring Theme: Changing Regulatory Landscape
According to Senate Majority Leader Mitch McConnell (R – KY), a new bill to reign in the Federal Reserve’s powers will move to a vote in early January. The bill follows a series of bills that have failed to pass in recent years to restrict the central bank’s autonomy in creating monetary policy and setting interest rates. After years of expansive Federal Reserve actions, including unprecedented relief programs, and prolonged periods of zero interest rates, members of Congress, especially Republican members, have pushed to bring the Federal Reserve and other agencies, such as the Consumer Financial Protection Bureau (CFPB), under more oversight.
The bill, known as the “Audit the Fed” bill, was introduced by presidential candidate and Senator Rand Raul (R – KY). The White House and Federal Reserve have come out to oppose the bill; however, such legislation is increasingly popular as the pendulum of regulation swings in the other directions.
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