Paul Ryan on The Federal Reserve
Congressman Ryan has been a consistent supporter of the Federal Reserve Banking system and the need for the private bank to remain independent of political interference. However, he has argued for ending the dual mandate for the system by removing the mandate that it reduce unemployment and leave the mandate to control inflation.
In 2006, Congressman Ryan introduced legislation aimed at reducing health care costs by requiring the Board of Governors of the Federal Reserve System to prescribe standards for the establishment and certification of independent health record banks to store individual electronic health records. While the legislation would give ownership of the health record to the individual in question, the bank woiuld be allowed to generate revenue through the sale of nonidentifiable and partially identifiable health information contained in the bank for research purposes. That revenue was required to be shared with account holders.
In 2008, Congressman Ryan noted his support for the Price Stability Act. This legislation sought to accomplich the goal of removing the unemployment portion of the Federal Reserve's dual mandate. That same year, Congressman Ryan noted that the Federal Reserves monetary policy was partially to blame for the cycle of booms and busts seen by farmers and other Americans. He suggested again that removing the dual mandate would help address the problem.
In 2009 and in 2012, Congressman Ryan spoke on the House floor discussing Wall Street Reform and the Federal Reserve Transparency Act respectively. In both of those speechs, Congressman Ryan cautioned against too much oversight or regulation of the Federal Reserve by politicians. He noted that even the appearance of political manipulation could have negative consequences for the American public. He continued with this insistence even while he noted that he voted in favor of the Federal Reserve Transparency Act to require an audit.
Price Stability Act
In May of 2008, Congressman Ryan issued a press statement noting his view that the Federal Reserve's dual mandate of controlling inflation and reducing unemployment cause it to attempt contradictory actions. He supports the Price Stability Act to refocus the Federal Reserve private bank on inflation.
Congress and Inflation
In May of 2008, Congressman Ryan wrote an op-ed for the Washington Times discussing the need to change the Federal Reserve's mandate from a dual mandate to one that solely addresses stable prices.
Boom and Bust Cycles
In December of 2008, Congressman Ryan released a statement noting his remarks on a farm bill. In that statement, he discussed affect of the Federal Reserve on boom and bust cycles.
... Another issue affecting farmers is the conduct of our monetary policy and the value of our currency. We are currently aiding a roller coaster of boom and bust cycles in commodity prices, which is largely due to Federal Reserve policy. I have introduced the Price Stability Act of 2008 to direct the Federal Reserve to focus its monetary policy on price stability, so we can reach a period of stable commodity prices that are predictable and reliable. Mother Nature throws enough challenges our way that provide uncertainty. We don’t need the federal government making matters worse. ...
Wall Street Reform
On December 11, 2009 Congressman Ryan spoke on the House floor discussing the Wall Street Reform Act. In that speech he again called for the removal of the dual mandate of the Federal Reserve Banking System. He also stated that political independence is not simply a luxury for our central bank but a core principle of good economic policy that yields real benefits for the American people. He continued by aserting that just as politicians involved in fiscal policy have a bias toward greater spending, monetary policy influenced by politics would have a bias toward looser credit over the short term and therefore higher rates of inflation over the longer term. Financial markets would immediately recognize this and push up our borrowing rates and further weaken our currency. He concluded by stating that while Congress should strive for robust oversight of the Fed, he opposes political interference.
Federal Reserve Transparency and Independence
In July of 2012, Congressman Ryan spoke on the House floor about the topic of the Federal Reserve and its need for political independence in relation to the Federal Reserve Transparency Act. He repeated his 2009 remarks that even the appearance of political influence on the fed would hurt the markets.
Federal Reserve Transparency Act
In July of 2012, the House voted to pass the Federal Reserve Transparency Act. This legislation would have enacted an audit of the private Federal Reserve Banking system. Although it passed with wide bipartisan support, it was not brought up in the Senate. Paul Ryan voted in favor of the Federal Reserve Transparency Act.
Paul Ryan voted in favor of the Federal Reserve Transparency Act.
Sponsored and Cosponsored Legislation
Repeals the authority of the Comptroller General to carry out an onsite examination of an open insured bank or bank holding company only if the appropriate federal regulatory agency has consented in writing. (Retains the authority of the Comptroller General to audit a federal agency.) Directs the Comptroller General to complete, before the end of 2010, an audit of the Board of Governors of the Federal Reserve System and of the federal reserve banks, followed by a detailed report to Congress.
Requires the Board of Governors of the Federal Reserve System to prescribe standards for the establishment and certification of independent health record banks to store individual electronic health records. Gives an individual ownership over his/her entire health record with the right to review its contents at any time during normal business hours. Allows a bank to generate revenue through the sale of nonidentifiable and partially identifiable health information contained in the bank for research purposes, but requires that such revenue be shared with account holders and allows such revenue to be shared with health care providers and payers. Excludes any such revenue from the gross income of the bank, account holder, or health care provider or payer. Requires prior authorization by an individual before access can be given to his/her electronic health record. Permits access to a limited, authenticated information set concerning an individual for emergency response purposes without the individual's prior consent. Requires the Board of Governors, acting through the Under Secretary for Technology or other appropriate official, to: (1) develop a program to certify entities to operate independent health record banks; and (2) establish an interagency council to develop standards for federal security auditing for entities operating banks. Imposes fines and/or imprisonment for the wrongful disclosure of information collected, maintained, or made available by a record bank. Amends the Internal Revenue Code to allow a tax deduction for the cost paid by a taxpayer to maintain an independent health record bank account.