Outsider Ron Paul finds support for Fed audit

09-04-2009 • Reuters

After decades of pushing long-shot causes like abolishing the income tax and reinstating the gold standard, Republican Representative Ron Paul finds himself in an unaccustomed spot: on the cusp of legislative victory. A majority of the libertarian-leaning Texan's colleagues in the House of Representatives support his proposal to increase congressional scrutiny of the Federal Reserve, and the measure could be included in a broader banking overhaul this fall. But don't expect the House to take up Paul's other pet causes, such as pulling out of the United Nations. Experts say the success of his Federal Reserve Scrutiny Act reflects rising unease with the central bank's dramatic actions over the past year, rather than any increased influence stemming from Paul's quixotic 2008 presidential bid. "He's finally found the right moment," said Sarah Binder of the liberal-leaning Brookings Institution. Paul's spokeswoman Rachel Mills agrees: "His bil