Rand Paul announces intent to place hold on nomination for fed chairman

Sen. Rand Paul said Tuesday that he plans to place a hold on the nomination of Janet Yellen as chairman of the Federal Reserve unless his Federal Reserve Transparency Act is also considered.

Paul issued a letter to Senate Majority Leader Harry Reid saying that "the American people have a right to know what this institution is doing with the nation's money supply. The Federal Reserve does not need prolonged secrecy — it needs to be audited, and my bipartisan Federal Reserve Transparency Act will do just that."

By placing a hold on the nomination, Paul would be declaring that he opposes having the nomination go before the full Senate.

According to a glossary at Senate.gov, "The majority leader need not follow the senator's wishes, but is on notice that the opposing senator may filibuster any motion to proceed to consider the measure."

Yellen, vice chair of the Federal Reserve, would be the first woman to lead the nation's central bank. President Barack Obama has nominated her to succeed Ben Bernanke.