WASHINGTON, D.C.—Ahead of tomorrow’s Federal Open Market Committee meeting, Senator Rick Scott sent letters to three of the recently confirmed Federal Reserve Board of Governors members pushing for accountability during their tenure. In the letters, Senator Scott details his deep concerns regarding the Fed’s reckless actions over the last decade that have resulted in a massively growing balance sheet and the loss of $1 trillion taxpayer dollars this year alone. Senator Scott concludes the letter by requesting the nominees answer four questions:

1. Will you commit to right-sizing the Federal Reserve’s balance sheet and, at minimum, meeting the asset reduction goals put forth by the Committee in January 2022?
2. Will you support a presidentially-appointed, Senate-confirmed Inspector General at the Federal Reserve?
3. Will you commit to reigning in interventionist long-term purchases by the Federal Reserve which only serve to distort markets and misallocate capital resources?
4. Will you commit to ending programs and operations that serve to drain liquidity and dampen access to capital in U.S. markets?

Earlier this Congress, Senator Scott introduced three new bills to reform the Federal Reserve and increase accountability to Congress and the American people. Senator Scott’s bills build on his bipartisan legislation with Senator Elizabeth Warren filed earlier this year which would make the Fed’s Inspector General a truly independent auditor following findings of possible conflicts of interest. Since being elected to the U.S. Senate, Senator Scott has repeatedly urged action to address America’s debt crisis and the harmful effects of inflation. Click HERE for a comprehensive list of his statements and actions on this urgent issue.

Read the full letters HERE or below.

September 18, 2023

Congratulations on your recent Senate confirmation to serve as a member of the Board of Governors of the Federal Reserve System. Your position is an important and crucial one, charged with helping our country navigate through one of the worst inflation crises in recent memory. Failure is not an option.

As we discussed during our recent conversation, I am very skeptical and concerned about the Federal Reserve’s actions over the past decade to balloon its balance sheet and asset holdings, namely the dangerous misallocation of capital that this has caused. The devastating impacts can be seen all around us today in our markets, small businesses, and families—record inflation, anemic growth, falling investment, and limited access to capital. Until the Fed’s balance sheet and holdings are right-sized, we cannot return to a true market. Further, the onerous actions by the Federal Reserve Board have led to a record $1 trillion loss of taxpayer dollars in just one year. This is unacceptable.

Finally, transparency and accountability at the Federal Reserve must be a priority. Today, the Federal Reserve is the largest government agency in the world, yet it operates without an independent, presidentially-appointed, Senate-confirmed Inspector General, unlike dozens of other federal government agencies and independent financial regulators. We have seen time and again how this structure does not work—the 2008 financial crisis, the failure of Signature Valley Bank (SVB) and others. Yet, no one is ever held accountable. The Federal Reserve must stop policing itself, and start welcoming true outside oversight to ensure it operates in a transparent and ethical manner. It is my sincere hope that you keep these important matters in mind as you continue your work as a Federal Reserve Governor and voting member of the Federal Open Market Committee (FOMC).

As you begin your new term, I write to ask you the following questions:

1. Will you commit to right-sizing the Federal Reserve’s balance sheet and, at minimum, meeting the asset reduction goals put forth by the Committee in January 2022?
2. Will you support a presidentially-appointed, Senate-confirmed Inspector General at the Federal Reserve?
3. Will you commit to reigning in interventionist long-term purchases by the Federal Reserve which only serve to distort markets and misallocate capital resources?
4. Will you commit to ending programs and operations that serve to drain liquidity and dampen access to capital in U.S. markets?

I look forward to your prompt response and continued conversation on these crucial issues. More work must be done to fix the Federal Reserve’s misguided path to date. I hope you will join me in fighting on behalf of real American families and the prosperity of our country going forward.

Sincerely,

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