The Fed has been engaged in an unprecedented policy, “quantitative easing” (QE), that’s been called “the greatest backdoor Wall Street bailout of all time.”
A Forbes article published on November 29 encourages readers to “Call Your Congressman In Favor Of Rand Paul’s Fed Audit.”
In support of its call to arms, Forbes lists a few recent Fed-related events that deserve to be subjected to greater scrutiny.
First, there is the approval by the Senate Banking Committee of Janet Yellen’s nomination to chair the Federal Reserve.
Next, Forbes reminds readers of the Fed’s influence on the U.S. (and the world’s) economy through its manipulation of monetary policy. Writes Forbes, noting Yellen’s support for these abuses of assumed power:
The Fed has been engaged in an unprecedented policy, “quantitative easing” (QE), that’s been called “the greatest backdoor Wall Street bailout of all time.” This program has been conducted with virtually no oversight or transparency, so we don’t know all the exact details, but the Fed is purchasing about $480 billion a year in mortgage-backed securities directly from the big banks and putting the taxpayer on the hook for them. Excessive exposure to mortgage-backed securities is what had some banks in trouble in 2008, but given the Fed’s lack of transparency, it’s not clear how risky its purchases are. The perfect time to audit the Fed is during this leadership change to gain more insight into this controversial program that Yellen openly supports.
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