Harry Reid: 'I've Sponsored Legislation ... For an Audit of the Federal Reserve'

July 26, 2012 - 7:58 AM

(CNSNews.com) – The House of Representatives overwhelmingly passed a bill (327-98) this week  to audit the Federal Reserve but the Democrat-controlled Senate is not expected to take up a similar measure there, even though Senate Majority Leader Harry Reid (D-Nev.) strongly favored auditing the Federal Reserve System several years ago.

On January 25, 1995, Reid argued in favor of an amendment by then Senator Byron Dorgan (D-N.D.) that would require the Federal Reserve to a prepare a report to Congress and disclose the financial impact of changing interest rates on the public and private sector.

“I have sponsored legislation that would call for an audit of the Federal Reserve System. I offer that amendment every year. Every year the legislation gets nowhere. I think it would be interesting to know about the Federal Reserve. I think we should audit the Federal Reserve,” Reid said.

He continued, “It's taxpayer's money that’s being used there but we don't do that. Senator Dorgan has spoke out on the secrecy of the Federal Reserve System. He's spoken out on the Federal Reserve more than anyone that I know in either body."

“But even though there is no entity in the world that controls our lives more than the Federal Reserve System, his speeches go unnoticed I'm sorry to say,” Reid said.

Reid lamented that the fact that the Federal Reserve System just wasn’t talked about enough.

“People just don't care, it seems, about the Federal Reserve. Maybe it’s because it’s a subject that isn't very interesting. You know it's not pornography. It's not Murder. It's not, it's not an issue that deals with the wild west water grazing. It doesn't deal with issues that we talk about here a lot. But we don't talk enough about the Federal Reserve and the impact it has in our life.”

Reid mentioned that the Federal Reserve raised interest rates six times since the February of 1994.

“If someone likes this legislation, generally speaking, that is, we're going to stop unfunded mandates, then they should love this amendment,” arguing in favor of an amendment sponsored by Dorgan.

“If the principle of unfunded mandates being stopped sounds good to Senators, then they should jump with joy and run over here and cosponsor this legislation. Because this, this really overshadows all other unfunded mandates. Because these go on all the time.”

Reid explained that the Federal Reserve Board’s ability to manipulate interest rates has an impact on the entire country – rich and poor.

“Not only do they effect government, because of the money that government's borrow. But it also affects the private sector significantly. There isn't a person that's listening to this debate or could listen to this debate that higher interest rates doesn't impact them. It doesn't matter if they're homeless or they're making a multi-million dollar transaction on Wall Street as we speak. Higher interest rates effect everybody in this country.”