So let's review. The FED is chartered with maintaining full employment and contain inflation. While they totally botched the first goal I'm sure that incurring 2 trillion dollars of additional debt (as a conservative estimate) won't create any new inflation.

The only thing that surprises me from the congressional replies is that they seem to know at least something about the FED. They must have needed to brush up after receiving enough calls and letters from their constituents. We shouldn't audit the FED, we should abolish it!

And again, thanks for your concern. If you have any questions, feel free to ask someone who's really considering answering you, instead of giving you the runaround.

Thank you for taking the time to contact me with your thoughts regarding the Federal Reserve System, commonly known as the Federal Reserve. I appreciate hearing from all Pennsylvanians about the issues that matter most to them.

The recent financial crisis has led to a high level of involvement on the part of the Federal Reserve in our economy. Since late 2007, the Federal Reserve, along with central banks around the globe, has lowered interest rates and pushed an unprecedented amount of money into the financial markets. In doing so, the Federal Reserve has attempted to stimulate lending activity by banks and other financial institutions in an effort to grow the economy.

Apart from the current crisis, the Federal Reserve plays a pivotal role in managing the long term health of our economy by enacting policies to promote stable inflation, maximize employment and moderate long-term interest rates. In fact, the Federal Reserve's policy decisions affect issues ranging from housing to international trade.

Given the unprecedented steps taken by the Federal Reserve to combat the recession, I understand your concerns. Moreover, I have recently heard from many constituents about the Federal Reserve Sunshine Act of 2009, which would establish a one-time audit of the Federal Reserve by the Comptroller General, who would report the findings to Congress and present legislative recommendations as appropriate. To the extent that such an audit would increase transparency with respect to policies and decisions undertaken to stabilize the economy, I believe it could be beneficial. At the same time, however, I believe the autonomy of the Federal Reserve with respect to establishing and implementing monetary policy should not be compromised. Please be assured, as efforts to increase government transparency come before the Senate, I will weigh this balance carefully.

Again, thank you for sharing your thoughts with me. Please do not hesitate to contact me in the future about this or any other matter of importance to you.

If you have access to the Internet, I encourage you to visit my web site, http://casey.senate.gov. I invite you to use this online office as a comprehensive resource to stay up-to-date on my work in Washington, request assistance from my office or share with me your thoughts on the issues that matter most to you and to Pennsylvania.

Sincerely,
Bob Casey
United States Senator

Dear Miss xxxxx:

Thank you for contacting me to express support for legislation to increase transparency at the Federal Reserve. I appreciate your interest in monetary policy and welcome the opportunity to respond.

The Federal Reserve was originally established in response to the country's need for a sound and independent central bank to manage decisions relating to U.S. monetary policy. I understand your concern with some of the unprecedented steps that the Federal Reserve has taken recently to ease the flow of credit and stabilize financial markets.

On March 16, 2009, Senator Bernard Sanders (I-VT) introduced the "Federal Reserve Sunshine Act of 2009" (S. 604), which would require the U.S. Comptroller General to audit the Federal Reserve System before the end of 2010. This bill has been referred to the Senate Banking, Housing, and Urban Affairs Committee. Representative Ron Paul (R-TX) has introduced a similar bill (H.R. 1207) in the House of Representatives. Please know that I will keep your support for this legislation in mind should it come before the full Senate.

While I recognize the importance of accountability in the operations of the Federal Reserve, I strongly believe that monetary decisions should be made independent of political influence or motives. You may be interested to learn that I supported an amendment to the Congressional Budget Resolution (S. Con. Res. 13) offered by Senator Sanders requiring the Federal Reserve to disclose how it has disbursed emergency economic assistance to financial institutions during this severe economic crisis. Be assured that I am carefully monitoring the actions taken by the Federal Reserve to help stimulate our economy and unfreeze credit for businesses and homeowners.

Once again, thank you for writing. I hope that you will continue to share your views with me. If I can be of any further assistance, please contact my Washington, D.C. office at (202) 224-3841. Best regards.
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Everybody notice the similarities between all of these letters?

Dear Mr. Craig,

Thank you for contacting me regarding S. 604, the Federal Reserve Sunshine Act of 2009. I appreciate hearing from you.

As you may know, S. 604 was introduced by Senator Sanders on March 16, 2009, and was referred to the Senate Committee on Banking, Housing, and Urban Affairs. The Federal Reserve Sunshine Act of 2009 would require the Comptroller General to complete an audit of the Board of Governors of the Federal Reserve System and Federal Reserve banks and submit a report to Congress.

The current structure of the Federal Reserve has three major components established by the original act. First, a Board of Governors oversees the whole Federal Reserve and has responsibility for monetary policy. Second, there are 12 regional Federal Reserve Banks, which carry out supervision and examination of commercial banks that are Fed members. The member banks, all national banks and all state-chartered banks that choose to be members of the Federal Reserve System, make up the third component.

I believe that Congress must achieve a balance between assuring independence for the Federal Reserve's operations and making the bank accountable for its actions. Congress exercises oversight on the Federal Reserve in a variety of ways. The Board of Governors of the Federal Reserve is required to send a Monetary Policy Report to the Congress twice a year outlining its monetary policy. Usually, the Chairman of the Fed testifies to Congress on this report. The Federal Banking Agency Audit Act (P.L. 95-320) gives the Government Accountability Office (GAO) the authority to audit the Board of Governors, the Reserve Banks and branches. Such audits are limited since GAO is prohibited from auditing monetary policy operations, foreign transactions, and the Federal Open Markets Committee operations. Congressional oversight on these matters is exercised through the requirement for reports and through semi-annual monetary policy hearings.

Although I am not a member of the Senate Banking Committee, I will be sure to keep your thoughts in mind regarding oversight and transparency at the Federal Reserve, should this issue come before the Senate for consideration.

Again, thank you for contacting me. I value your input. Please do not hesitate to contact me or my office regarding this or any other matter of concern to you.