I’m disappointed I had to withdraw from the nomination to be a member of the Federal Reserve Board because I do believe the Fed needs to change the way it operates.
In the last month, I started investigating how it makes its decisions, which have such a dramatic impact on jobs, wages, interest rates and the overall well-being of the country. How does the Fed make its monetary policy decisions on setting interest rates, buying bonds and regulating our financial institutions?
What I have discovered is that this powerful agency of government truly does operate under a stone wall of secrecy. Meetings are held behind closed doors; statements are carefully crafted to reveal little in the way of what monetary authorities actually think; and the day-to-day activities are shielded from audit.
The Fed is arguably the least transparent agency of the federal government, outside of security agencies such as the CIA. It is obvious why national security agencies need to be secretive. But why does the Fed?
When elected officials like Sen. Rand Paul have requested more Fed openness, the Fed hierarchies are contemptuous. He says their response is: “Go away. It is none of your business.”