Comstock Inc (LODE)

[Darwind]

Ron Paul Embarks On Campaign Against Federal Reserve

http://online.wsj.com/article/BT-CO-20110202-715057.html


By Luca Di Leo
Of DOW JONES NEWSWIRES


WASHINGTON (Dow Jones)--Rep. Ron Paul (R., Texas) will chair a hearing Feb. 9 on the impact of the Federal Reserve's policies on unemployment, as the long-time Fed critic embarks on his campaign against the U.S. central bank.

"Despite enormous amounts of monetary and credit expansion by the Federal Reserve in recent years, the nation's unemployment picture remains bleak," said Paul, who was named to chair the subcommittee on monetary policy after Republicans regained control of the House.

Since the Fed announced a plan to buy $600 billion in government bonds to lift the economy, senior Republicans have attacked the move, saying it could bring runaway inflation. Several lawmakers have proposed narrowing the Fed's mandate to price stability, eliminating the employment part.

Fed Chairman Ben Bernanke has staunchly defended the bond purchases, saying they were needed to kick-start a weak recovery and prevent deflation. With prices so low, Fed officials say they would have taken the step even if their only mandate had been price stability.

Paul, author of a book entitled "End the Fed," is expected to spearhead the onslaught by some Republicans against the central bank. Last week, he re-introduced legislation to deepen audits on the Fed, after an attempt to scrutinize the Fed's interest-rate decisions failed last year. His son, Sen. Rand Paul (R., Ky.), put forward similar legislation in the upper chamber after joining the Senate as a freshman lawmaker in January.

-By Luca Di Leo, Dow Jones Newswires; 202-862-6682; [e-mail]