Rep. Ron Paul (R-TX) chaired a House Financial Services Subcommittee hearing on six legislative proposals that either reform or suggest abolishing the Federal Reserve System.
According to the Committee, calls for reforming aspects of the Federal Reserve System have existed since the agency's creation in 1913. However, the committee states, "with the onset of the financial crisis of 2008-2009 and during the prolonged recession, calls for reform have escalated."
The Federal Reserve responded to the financial crisis with monetary easing. Various economic analysts claim the Fed's attempts at a solution have set the stage for sustained inflation when the economy recovers. Slow economic growth, however, has led other economists to argue the Federal Reserve has not done enough and must be more accommodative in its conduct of monetary policy.
Witnesses included economic scholars and analysts along with three Congressmen that currently sponsor bills on the issue.
The six proposals discussed by the Subcommittee
H.R. 245, introduced by Rep. Mike Pence
H.R. 1094, the Federal Reserve Board Abolition Act, introduced by Rep. Paul
H.R. 1401, the Democratizing the Federal Reserve System Act, introduced by Rep. Marcy Kaptur
H.R. 2990, the National Emergency Employment Defense Act, introduced by Rep. Dennis Kucinich
H.R. 3428, introduced by Rep. Barney Frank
H.R. 4180, the Sound Dollar Act, introduced by Rep. Kevin Brady