In what Congressman Bacchus called “a double dose,” Texas Representative Ron Paul grilled Fed Chairman Ben Bernanke on two occasions on Tuesday at the House Financial Services Committee. Congressman Paul scolded the Fed Chairman for being “secretive” while claiming that the financial crisis is “far from over…”
After facing a relatively tamer Senate Banking Committee, the Fed Chairman’s feet were held to the fire by Ron Paul & Co.
While the exchange was rather one-sided, Ron Paul made his points heard. He first criticized the Fed for equivocating independence with secrecy, noting that about $15 trillion had been used for overseas bailouts during the crisis, via currency swaps, which the Congress could not monitor.
Ron Paul then noted that when Bernanke claims the Fed stands ready to support Europe and other geographies during times of financial and economic crisis, it’s actually the American tax payer that is shouldering the burden. The Fed Chairman responded by noting that it is Congress which delegated the responsibility to manage monetary policy to the Federal Reserve.
While the Fed Chairman tried to avoid engaging Ron Paul, he did show his ideological bent when he told Ron Paul that while Congress could eliminate the statue the makes the Fed an independent body, it would result in a more inefficient central bank and ultimately a worse outcome.
The Congressman from Texas also warned that the financial crisis is in the early stages, “it’s far from over,” he added…