Fed Critic Ron Paul to Head Subcommittee That Oversees Central Bank

In a move that may seem to some like putting the fox in charge of the hen house, Rep. Ron Paul (R-Texas) has been named to head the House subcommittee that oversees the Federal Reserve.

Paul, 75, is a longtime critic of the central bank and, as Bloomberg pointed out, has even written a book called "End the Fed." He will lead the domestic monetary policy subcommittee of the House Financial Services panel.

In announcing Paul's appointment Thursday, chairman-elect Spencer Bachus (R-Ala.) said the Texan would add to the 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."

Paul told Bloomberg last week he plans to call for hearings on U.S. monetary policy and will continue to press for a full accounting of the Fed's functions. In the past, Paul has introduced legislation to abolish the central bank.

Last month Paul told Reuters the Fed needed to be reigned in, a theme he hit upon repeatedly during his presidential campaign in 2008.

"I think they're way too independent. They just shouldn't have this power," he said. "Up until recently it has been modest but now it's totally out of control."