1 00:00:00,000 --> 00:00:06,679 We have to maintain a confidence in the system because it's a voluntary system 2 00:00:06,679 --> 00:00:13,429 of payment of our taxes. I agree. The Federal Reserve was created by Congress in 1913 3 00:00:13,460 --> 00:00:17,989 and it was entrusted with the power branded originally to the Congress by the U. 4 00:00:17,989 --> 00:00:22,000 S. Constitution to coin money and regulate the value thereof. 5 00:00:22,000 --> 00:00:28,620 What is the proper relationship, what should be the proper relationship between a chair... 6 00:00:28,620 --> 00:00:35,189 Fed and a president of the United States? Well, first of all, the Federal Reserve 7 00:00:35,189 --> 00:00:42,520 is an independent agency, and that means basically that there is no other agency of... 8 00:00:42,520 --> 00:00:49,750 which can overrule actions that we take. So long as that is in place and there is no... 9 00:00:49,750 --> 00:00:56,439 that the administration or the Congress or anybody else is requesting that we do things 10 00:00:56,439 --> 00:01:05,000 other than what we think is the appropriate thing, then what the relationships are don... 11 00:01:05,000 --> 00:01:12,000 What has been going on in the 21st century with the extraordinary changes in... 12 00:01:12,000 --> 00:01:18,519 My concern about the legislation is that the GAO is auditing not only the operational 13 00:01:18,519 --> 00:01:25,390 aspects of our programs and the details of the programs, but it's making judgments ab... 14 00:01:25,390 --> 00:01:32,079 be a takeover of monetary policy by the Congress, a repudiation of the independenc... 15 00:01:32,079 --> 00:01:38,000 destructive to the stability of the financial system, the dollar, and our national econo... 16 00:01:38,000 --> 00:01:44,219 situation. What do you fear about the audit? Give me a real time example. 17 00:01:44,219 --> 00:01:50,799 So I would envision a situation where the GAO, if the request of members of Congress 18 00:01:50,799 --> 00:01:57,439 , might come in and say at our meeting a week ago, they have taken the transcripts and... 19 00:01:57,439 --> 00:02:02,939 , they believe that the decision we made was the wrong one at that particular meeting. 20 00:02:02,980 --> 00:02:09,639 And I would say that's an extreme interference and politicization of our... 21 00:02:09,639 --> 00:02:13,349 to make independent monetary policy decisions.