Fed critic Ron Paul wins oversight gavel

Rep. Spencer Bachus (R-Ala.), the incoming chairman of the House Financial Service Committee, on Thursday approved Paul’s bid to lead the Domestic Monetary Policy Subcommittee.

“This is the leadership team that crafted the first comprehensive financial reform bill to put an end to the bailouts, wind down the taxpayer funding of Fannie Mae and Freddie Mac, and enforce a strong audit of the Federal Reserve,” Bachus said. “We are ready to hit the ground running, and I look forward to continuing our work in the next Congress.”

Paul was poised to take the subcommittee gavel after serving as the ranking minority member during the current Congress. The announcement quashes rumors that Republican leadership might try to prevent Paul from leading the subcommittee, which is sure to take on an aggressive and vocal role under Paul’s leadership.

Paul vowed in an interview with The Hill last month that as chairman he would shine a light on the Fed’s policies, which he called opaque and destructive. If necessary, he would be willing to subpoena Fed officials to come testify before his panel, he said.

Paul has introduced legislation in the past to abolish the central bank, and pushed hard in a failed effort to include a provision in the Dodd-Frank financial reform law that would require a complete audit of the Fed’s operations.

Bachus said the committee’s first priority will be to “end the taxpayer funded bailout of Fannie [Mae] and Freddie [Mac].”

Expected to play a key role in the push to reform the government-sponsored enterprises will be Rep. Scott Garrett (R-N.J.), who was named chairman of the Capital Markets and Government-Sponsored Enterprises Subcommittee.

Rep. Jeb Hensarling (R-Texas) was named Vice Chairman of the full committee.

Rep. Judy Biggert (R-Ill.) was tapped to chair the Insurance, Housing and Community Opportunity Subcommittee, and Rep. Shelley Moore Capito (R-W.Va) will chair the Financial Institutions Subcommittee.

Rep. Gary Miller (R-Calif.) will chair the International Monetary Policy Subcommittee, and Rep. Randy Neugebauer (R-Texas) will chair the Oversight and Investigations Subcommittee.