Republican Senator Pat Toomey Presents Bill To Address 'Political Bias' Within Fed's System: What You Should Know

The U.S. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) on Wednesday introduced the Federal Reserve Accountability Act that intends to increase accountability, address left-leaning political activism, and ensure greater geographic and professional diversity within the Federal Reserve System, a release said.

The bill’s co-sponsors include Senators Kevin Cramer (R-N.D.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Thom Tillis (R-N.C.), Bill Hagerty (R-Tenn.), and Ted Cruz (R-Texas), according to the release.

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The bill makes the presidents of Fed regional banks presidentially appointed, Senate-confirmed positions. It will also make the Fed’s General Counsel — a powerful position that has been called the “eighth governor” of the Fed’s Board of Governors—a presidentially-appointed, Senate-confirmed position.

To address problems with left-leaning political bias and limit the concentration of power in Washington, the bill also proposes to reduce the number of Fed regional banks from twelve to five which will enable more effective congressional oversight and ensure all presidents of Fed regional banks have permanent seats on the Federal Open Market Committee (FOMC).

It will also apply the federal Anti-Lobbying Act to the Fed regional banks and the Fed Board of Governors so that federal resources cannot be used for political lobbying at the state or federal level.

“Despite their narrow and non-partisan statutory mandates, the Fed and regional Fed banks have increasingly inserted themselves into politically-charged issues like global warming and social justice,” said Sen. Pat Toomey. “Congress has a responsibility to ensure the Fed does not become a political actor. This legislation will further that important goal by reforming the Fed to make it more accountable to Congress and the American people,” he added.

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