Rep. Ron Paul (R-Texas) won a rare legislative victory on Wednesday when the House passed his legislation allowing for a full audit of the Federal Reserve, including an audit of the Fed’s monetary policy decisions.
On Tuesday, Paul rejected charges that requiring a deeper audit of the Fed’s monetary policy decisions would open up the Fed to political pressure to make certain decisions preferred by Congress. He said the Fed has already shown itself to be politicized by bailing out some financial institutions, but not others.
“It’s very political when you have a Federal Reserve that can bail out one company and not another company,” Paul said. “That’s pretty political.”
Having a look inside the Fed is long overdue and Paul’s observation that the Fed is already deeply politicized is hard to argue with.