Sen. Rand Paul Calls for Audit and Reform of the Federal Reserve
In a recent interview, Senator Rand Paul from Kentucky expressed his support for abolishing the Federal Reserve System, although he emphasized that this would only be feasible if the government commits to ceasing deficit spending and operates under a balanced budget. Paul, known for his fiscal conservatism, voiced his skepticism about the likelihood of such a scenario occurring anytime soon.
“I see the opposite,” Paul remarked. He pointed out that many in the Republican Party, who once focused on budget deficits during the Biden administration, seem to pay less attention to the issue under former President Trump.
Paul believes that if Congress were to stop running deficits, the Federal Reserve might not be necessary. However, he noted the need for an alternative system to manage markets if the Fed were to be eliminated. He argued that the free market should be allowed to determine interest rates rather than having the government intervene.
“Interest rates are a universal price,” he explained, adding that they play a crucial role in the economy.
Currently, calls for lower interest rates are rampant, with Trump advocating for cuts. Paul equated demands for reduced interest rates to suggesting that the government should intervene in the prices of essential goods, a notion he found absurd.
The senator believes that a Federal Reserve less involved in manipulating interest rates could lead to a more stable economy.
To increase transparency, Paul is backing a bill to audit the Federal Reserve, stating that it is one of the most powerful and secretive entities in government. This proposed legislation, supported by some of his Republican colleagues, aims to have the Comptroller General of the U.S. conduct an audit of the Federal Reserve’s operations.
Additionally, he is also backing a bipartisan initiative titled “End the Fed’s Big Bank Bailout Act,” which seeks to restrict Federal Reserve banks from paying earnings on balances maintained by depository institutions.
Paul’s push for reform clearly reflects a desire for a more accountable and fiscally responsible government.
