Target: Harry Reid, US Senate Majority Leader
Goal: Demand that the central banking system known as the Federal Reserve be regulated and subject to congressional and presidential oversight
Despite the fact that the Federal Reserve is, by its own account, answerable to virtually no one consumer transactions are governed by its policies. The official website of the United States’ Federal Reserve, often called the “Fed,” describes it as an independent central bank whose “monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government.”
The Fed claims to “not receive funding appropriated by the Congress.” Nonetheless, the bank was bailed out with what Pro Publica and others estimate was an initial $180 billion to help cover losses from its majority stake in failing insurance giant AIG.
The Fed’s role as the United States’ central bank, and its ability to dictate monetary and trade policy, has evolved gradually since its creation in 1913. Today many would argue that the Fed has an often de-stabilizing effect on the US economy. Forbes described then-Chairman of the Fed Ben Bernanke as having “deliberately and transparently triggered the Great Recession of 2007-2009.”
Americans are tired of shouldering the burden of unfit policy. It is time that the Fed came under the jurisdiction, and regulatory authority, of the federal government. Call on the Senate Majority Leader to advance legislation to regulate and reign in the Federal Reserve.
Dear Senator Reid,
Former Fed Chairman Alan Greenspan was quoted as saying, “There are no other agencies that can overrule the action we [the Fed] take.” For the tens of millions of Americans still struggling in the wake of a major recession, the Fed’s secretive nature and impact on their financial lives have become too much to bear.
The Federal Reserve Act tasked the bank with the noble mission of ensuring “maximum employment, stable prices, and moderate long-term interest rates;” yet the Fed is widely seen as having playing a role in the same Great Recession still causing spikes in homelessness, hunger and other needless suffering. Inflation has outpaced wages for decades. Clearly, the Fed requires at the very least strict oversight to ensure fulfillment of its mission.
Please, Senator Reid, work together with your colleagues to pass legislation that brings the Fed under the regulatory authority of the US Congress and the President. I have no doubt that the bank will fight against any such attempts, but this labor is worthy of your most dedicated efforts.
[Your Name Here]
Photo credit: Dan Smith via Wikimedia Commons