Last week, before Congress adjourned, the House overwhelmingly passed the bipartisan Federal Reserve Transparency Act, H.R. 24, which would open up the Federal Reserve to more Congressional oversight and scrutiny of its activities.
The legislation specifically instructs the Government Accountability Office (GAO) to complete an audit of the Federal Reserve within one year of the passing of the bill, and to submit to Congress a detailed report of the findings, conclusions, and recommendations for legislative action.
The Federal Reserve is not dependent on appropriations from Congress, and its actions do not have to be approved by the president or Congress. These actions include monetary policy decisions, loans to financial institutions and dealings with foreign governments and other central banks. This means that unelected bureaucrats, who are not accountable to the American people, conduct the Federal Reserve’s most important business behind closed doors. This is why I believe Congress should maintain stronger oversight over the Federal Reserve’s actions.
The current bill, which I also co-sponsored, has been sent to the Senate, but as with hundreds of other pieces of the legislation, the Senate is not expected to even hold a vote even though over 100 Democrats supported the House measure.
This is a commonsense bill that would open up the books of the Federal Reserve and shine much needed light on the inner workings of the monetary decisions that are made by our federal government.
Member of Congress
September 26, 2014