Some people are not enamored of the Fed, the separate government bureau that determines the country’s financial policy and sets interest rates. The House of Representatives has just passed a strict bill to audit the Federal reserve, though it isn’t likely to go anywhere.
Fed to face massive audit
The Federal reserve controls how much a dollar is worth and the cash it takes for a bank it lend mortgages, installment loans and more. It was created in 1913 and affects daily life regularly with its control of lending and inflation. Many people do not realize how much it impacts their life each day.
The Fed is also one of the many “independent government agencies.” In other words, it’s a private business that is part of the government. Some think not enough data is made publicly accessible by the Federal reserve about its dealings, which has led to many legislators and citizens calling for a bill that would audit the Fed, or rather force the bureau to open its books completely to scrutiny.
Approved in House
A bill has just passed the House of Representatives, according to ABC, that would “open the books” of the Federal reserve, possibly to the GAO or some other agency. The bill was, naturally, authored and sponsored by Representative Ron Paul of Texas, a constant critic of “the Federal reserve.” The bill passed 327 for to 98.
The bureau already has an internal audit performed yearly, according to CNN. One of the most recent was by Deloitte and Touche, one of the “Big Four” auditing firms. The agency also publishes its balance sheet online every week. However, the point is more to get urgent access to Fed policy decisions, specifically monetary policy decisions. Records of those meetings, where the agency decides the inflation rate for American currency, take a bit longer to come out. It takes three weeks for meeting minutes to be released. The transcripts take five years.
Fed chairman Ben Bernanke not okay with it
Federal reserve Chairman Ben Bernanke has often warned, according to Bloomberg, that an “audit the Fed” law that goes too far will place the agency under direct Congressional control, which could possibly put the agency at risk of manipulation for political purposes. Part and parcel to the agency’s creation was that it remains independent of Congress, which is often as fickle as public opinion. He does, however, advocate for greater transparency.
The bill is unlikely to pass in the Senate. Bloomberg quoted Representative Barney Frank as saying “no one here expects it to become law.”
How often have you wanted more info on the best way to find a payday loan guaranteed acceptance, and resorted to a web search on “legit payday loan sites?” Your search is over, all the information you’ll need is at www.MatchFinancial.com.