IN CASE YOU MISSED IT… Sen. Rick Scott in the Washington Examiner: Fed Chairman Jay Powell lost more than $1 trillion of your money. This is my proposal for real accountability

July 20, 2023

WASHINGTON, D.C. – In case you missed it, Senator Rick Scott wrote an op-ed for the Washington Examiner announcing the details of three new bills to reform the Federal Reserve and increase accountability to Congress and the American people. Senator Scott’s bills build on legislation filed earlier this year by Senator Scott and Senator Elizabeth Warren which would make the Fed’s Inspector General a truly independent auditor.


In the op-ed, Senator Rick Scott wrote, “The Federal Reserve is burning your money, and for far too long, Washington has let it happen with no consequences. Right now, the Fed has very little real oversight. Not even the inspector general at the Fed is truly independent. Worse still, the Fed isn’t required to comply with standard banking practices like nearly every other financial institution in America. 


The Federal Reserve is burning your money, and for far too long, Washington has let it happen with no consequences.


I recently introduced a bill to require a presidentially appointed and Senate-confirmed inspector general to the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. When I announced this bill, the Fed inspector general wrote me an unsolicited letter complaining that his current salary (a cushy $377,800) would be cut to $200,000 if my bill became law. Clearly, changes are needed.


Now, I’m introducing three other bills to rein in this out-of-control agency before even more of your hard-earned dollars are wasted.


Jerome Powell, the current chairman of the Federal Reserve Board, might be the only man in American history who has managed to lose more than $1 trillion of taxpayer money. 



My Regular Order for Investments, ROI, of the Federal Reserve Act would end these bad practices and force the Fed to consider the impact of its decisions on hard-working families so this never happens again.



Working in conjunction with the ROI of the Federal Reserve Act, my Rightsize the Federal Reserve Act would ensure an unwinding of this massive balance sheet by mandating that the Fed’s balance sheet remain at or below 10% of U.S. gross domestic product, which lowers risk and better protects your taxpayer money. Right now, the Fed’s balance sheet is equivalent to 30% of GDP. The Fed shouldn’t be this big, and it shouldn’t be in the business of making risky investment decisions when the economy and taxpayer dollars are at risk.



My Rein in the Federal Reserve Act would interject much-needed scrutiny and accountability of the Fed’s actions by establishing a statutory process for actual oversight by Congress.



And to make sure that the Fed doesn’t drag out these emergencies indefinitely, my bill would require that Congress votes to reauthorize any emergency spending programs after one calendar year. The Rein in the Federal Reserve Act also gives Congress the power to vote on ending any of the Fed’s emergency programs. The Federal Reserve has gotten far too big, unaccountable, and reckless. There is no internal scrutiny. 



We can’t wait any longer for big change at the Fed. Powell and his board have overseen the loss of more than $1 trillion of your money while growing their balance sheet to $8.3 trillion and risking even more losses. Families must not be forced to endure continued failures at the Federal Reserve. It’s time for Congress to stand up and demand accountability.”


Read the full op-ed in Washington Examiner HERE.