A lot of people are not enamored of the Federal reserve, the independent government agency that determines the country's monetary policy and sets interest rates. The House of Representatives has just passed a stringent bill to audit the Fed, though it isn't prone to go anywhere.
Call to audit the Federal reserve gaining momentum
The Federal reserve, since its creation in 1913, has held sway in ways that many don't realize impact daily life. It is the nation's central bank, and controls the country's cash supply, inflation rates and, through that, the costs of lending cash. In short, how much a dollar is worth and just how expensive it is for banks to lend mortgages, installment loans and so forth, is part of what the Federal reserve controls, among other things.
As an "independent government agency," the Federal reserve is still part of the government as a private business. Many people think it should be required to open its books to the public since there is not a ton of info made accessible to the public about its dealings. Citizens and legislators all support a bill that would require an audit of the Federal reserve.
Approved in House
The Federal reserve has been criticized by Ron Paul of Texas for some time, which is why he sponsored the bill which approved 327 to 98 in the House of Representatives. ABC points out that the House is ready for additional government agencies to show their finances.
The basic idea of the bill would allow more access to Federal reserve policy decisions. Right now, records from meetings where the Fed decides to adjust the inflation rate on currency take three weeks to be released and five years for the transcript to come out. The agency publishes its balance sheet every week online too. CNN points out that Deloitte and Touche just did an internal audit. The audits are done yearly. The idea of the bill is for more urgent access though.
Problem with audit
Congress might end up controlling the Fed if the brand new Audit the Fed law is approved; Fed Chairman Ben Bernanke is worried about, according to Bloomberg. This could cause a lot of corruption and manipulation of the Fed, which is a massive concern for Bernanke. He has no problem with more transparency in finances though.
The bill is unlikely to pass in the U.S. Senate. Bloomberg quoted Representative Barney Frank as saying "no one here expects it to become law."
Call to audit the Federal reserve gaining momentum
The Federal reserve, since its creation in 1913, has held sway in ways that many don't realize impact daily life. It is the nation's central bank, and controls the country's cash supply, inflation rates and, through that, the costs of lending cash. In short, how much a dollar is worth and just how expensive it is for banks to lend mortgages, installment loans and so forth, is part of what the Federal reserve controls, among other things.
As an "independent government agency," the Federal reserve is still part of the government as a private business. Many people think it should be required to open its books to the public since there is not a ton of info made accessible to the public about its dealings. Citizens and legislators all support a bill that would require an audit of the Federal reserve.
Approved in House
The Federal reserve has been criticized by Ron Paul of Texas for some time, which is why he sponsored the bill which approved 327 to 98 in the House of Representatives. ABC points out that the House is ready for additional government agencies to show their finances.
The basic idea of the bill would allow more access to Federal reserve policy decisions. Right now, records from meetings where the Fed decides to adjust the inflation rate on currency take three weeks to be released and five years for the transcript to come out. The agency publishes its balance sheet every week online too. CNN points out that Deloitte and Touche just did an internal audit. The audits are done yearly. The idea of the bill is for more urgent access though.
Problem with audit
Congress might end up controlling the Fed if the brand new Audit the Fed law is approved; Fed Chairman Ben Bernanke is worried about, according to Bloomberg. This could cause a lot of corruption and manipulation of the Fed, which is a massive concern for Bernanke. He has no problem with more transparency in finances though.
The bill is unlikely to pass in the U.S. Senate. Bloomberg quoted Representative Barney Frank as saying "no one here expects it to become law."
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