[Congressional Record Volume 141, Number 21 (Thursday, February 2, 1995)]
[House]
[Page H1076]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


INTRODUCTION OF LEGISLATION TO AUDIT OPERATIONS OF THE FEDERAL RESERVE 
                                 SYSTEM

  (Mr. VOLKMER asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. VOLKMER. Mr. Speaker, I rise to inform my colleagues of 
legislation that I am introducing to audit the operations of the 
Federal Reserve System, including the Reserve Board, the Advisory 
Council, the Open Market Committee, and the Reserve banks.
  Mr. Speaker, yesterday, the Federal Reserve again raised short-term 
interest rates. In a 2-day meeting behind closed doors the Federal Open 
market Committee raised the rate by a half point. For the seventh time 
in a year the Fed has seen fit to slow our growing economy and raise 
interest rates to the highest point since 1991. To paraphrase Senator 
Dirksen, a half point here, three-quarters of a point there, and pretty 
soon we are talking about real interest.
  Immediately after the Fed's announcement, major banks across the 
country raised their prime lending rate to 9 percent, forming an even 
bigger roadblock for those wanting to buy into the American dream of 
home ownership.
  Mr. Speaker, I would like to know, as I am sure many of my colleagues 
would like to know, what crystal ball the all-knowing Federal Reserve 
Board uses so they can keep inflation contained when most economists 
believe that inflation is under control. That is why we need an audit, 
and that is why I have introduced this legislation. I ask my colleagues 
to join with me by cosponsoring this legislation so that we too can 
look behind those closed doors.


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