Pelosi: Federal Reserve Needs More Transparency
By Ben Pershing
Speaker Nancy Pelosi (D-Calif.) said this morning that the Federal Reserve should operate with more transparency, one day after President Obama unveiled a financial regulatory overhaul that would give increased authority to the central bank.
"The fact is that the American people want to know more of the 'Secrets of the Temple,'" Pelosi said at her weekly press conference, referring to the 20-year-old book on the Fed she called "required reading in my day."
Even as Obama proposes to give the Fed more power to regulate firms and markets, an increasing number of members of Congress have expressed unease about the bank's growing reach and the murkiness of its finances. A bill authored by Rep. Ron Paul (R-Texas) calling for a full audit of the Fed's books by the U.S. Comptroller General now has a bipartisan group of 234 co-sponsors.
Pelosi said she did not know the specific details of Paul's bill, but did make clear she wanted to know more about the Fed's balance sheet, particularly since the central bank stepped in to bail out the insurance giant AIG last fall.
"Many of us were, shall we say, not surprised [but] taken aback when the Fed had $80 billion to put into AIG just out of the blue," Pelosi recalled. "All of the sudden you wake up one morning and AIG is receving $80 billion from the Fed. So of course we're saying, 'Where is this money coming from?'" And, she said, the Fed responded: "'Oh, we have it, and not only that, we have more.'"
Pelosi did not criticize any of Obama's financial overhaul proposals, nor did she provide any specifics on how oversight of the Fed should be increased. But, she said, "a balance has to be struck between what is required to run the Fed in a responsible way [and] what transparency there should be, so as the Fed assumes even more power... the American people have more knowledge about it."
Posted by: Bubbette1 | June 18, 2009 12:42 PM | Report abuse
Posted by: josephle2k | June 18, 2009 2:40 PM | Report abuse
Posted by: josephle2k | June 18, 2009 2:47 PM | Report abuse
Posted by: e192108 | June 18, 2009 8:28 PM | Report abuse
Posted by: silusdogood | June 20, 2009 10:24 PM | Report abuse
The comments to this entry are closed.