Reexamining The Federal Reserve Mandate

WASHINGTON – (Newsblaze) After stepping away from the intense hearings into the misconduct of the Internal Revenue Service proceeding on Capitol Hill Tuesday Texas congressman Rep. Kevin Brady came to the Heritage Foundation at the conservative think tank’s weekly luncheon for bloggers and reporters with a basic message that after a century of operation of the Federal Reserve that it was time reexamine the agency’s mandate.

Despite the archaic nature of the subject, Brady is finding considerable interest in the subject since holding 50 townhall meetings in his district annually from constituents. Increasing numbers are asking “who gave the fed the power?”

That inspiration, along with deteriorating economic conditions and rising debt came after taking control of the chairmanship of the Joint Economic Committee, and lead to the idea of turning the panel into a “think tank.” He went to his staff with this challenge “what would it take to maintain an American century?” The answer to that question centered around a revamped federal reserve, in the Texan’s view.

Volatile Moves In Financial Markets

rep kevin brady
Rep. Kevin Brady right, at the Heritage Foundation, June 2013

“Look what happened with the fed in two days,” Brady said, noting that recent statements from the federal reserves were causing very volatile moves on financial markets, with the economy missing four million jobs and shrinkage of economic activity causing the loss of twenty trillion dollars in future economic activity.

Brady went to work setting up a bipartisan group of six members of both parties “Centennial Monetary Commission” (H.R. 1176) to figure out what the role of the fed should be. Brady anticipates the net result of the commission will be the “Sound Dollar Act” which currently has 51 co-sponsors and is supported by Utah Senator Mike Lee and CNBC personality Larry Kudlow.

The act centers on the idea of changing the Fed’s “Dual Mandate” of monetary policy that ties unemployment rates back to the “single mandate” of monetary policy tied exclusively to the purchasing price of the dollar.

Other goals of the act include “breaking the New York-Washington, DC axis” in federal reserve voting with the belief that all twelve Federal Reserve Bank presidents would give a more accurate economic picture and that the transcript of Federal Reserve meeting minutes should be opened within three years.

Democrat Interest In Reforms?

Although Brady has found very little support from Democrats about Fed reforms, Brady noted “It should be a priority for them.” The congressman noted that credit analysts examining the federal government are querying lawmakers “are you serious about entitlement reform as well?”

Paralleling the Congressman’s efforts on Federal Reserve Reform, he is also tackling regulatory reform with the introduction of “the Sound Regulation Act,” which would require cost benefit analysis that is not being done now.

“Of 3,500 regulations, only 13 went through a cost benefit analysis,” the Congressman observed, and in nearly all of those cases, the agency analysis tends to be positive for the regulation rather than a real world dynamic analysis, as conservative scholars advocate.

In other news, the congressman was asked about the new Medicare report which showed two more years of solvency. He responded by noting it was “the Titanic is going hit the iceberg an hour later.”

Brady’s Centennial Monetary Commission is expected to report June 30, 2014.

Hot this week

Did David Wineland and Serge Haroche Steal Idea For The Nobel Physics Prize?

Dr. Omerbashich says the Royal Swedish Academy is a Crime Scene and he has the proof that Nobel laureates stole his discovery.

New Approaches to Disaster Relief Challenges

Disaster relief has always been a challenge. NASA, Google,...

3 Legitimate Money Making Methods to Supplement Your Income

In a perfect world, when your landlord raises your...

2016 Predictions by World Renowned Medium and Psychic Lindy Baker

World renowned medium and psychic Lindy Baker is interviewed by The Hollywood Sentinel, discussing psychic power, the spirit world, life after death, areas of concern in 2016, and much more.

Digital Coupon Customers Spending More Than Double At Stores

A new study shows that customers who use digital coupons go shopping more for groceries and other household goods more often and spend more on their shopping trips.

Israel’s Judicial Conundrum

Reality check: the unpopular and perhaps controversial thought must be said. Israel is entrenched in a judicial conundrum that places its very existence in jeopardy.

Bigger Tax Refunds for U.S. Property Owners in 2025 – Due to Rising Costs of Homeownership

The size of the refund depends on different factors. First, let's discuss why homeowners will qualify for larger tax refunds.

Kamala Harris Presidential Campaign Paid Millions to Celebrity Production Companies Despite Denials

Waste and political funding in focus, revelations show the failed Kamala Harris presidential campaign funneled big funds into celebrity production.

Robert F. Kennedy Jr. Confirmed as HHS Secretary in 52-48 Senate Vote

Robert F. Kennedy Jr. was confirmed as Secretary of...

Somalia Launches First Youth Football Development Center

Inaugurated by the president of Somali Football Federation, Mr. Ali Abdi Mohamed, the new youth football development center began its operation in the city of Baidoa on Thursday 13th of February 2025.

Tulsi Gabbard Confirmed as U.S. Director of National Intelligence, Meets with Indian PM Modi

Tulsi Gabbard, Director of National Intelligence The U.S. Senate confirmed...

Why Is Kendrick Lamar Dissing Drake Now?

Kendrick Lamar and Drake once shared a collaborative spirit, but tensions simmered in 2013 with Lamar's bold verse on "Control." What followed...
spot_img

Related Articles

Popular Categories

spot_imgspot_img