On Wednesday, U.S. Senator Rand Paul (R-KY) reintroduced the Federal Reserve Transparency Act or the “Audit the Fed” bill, to prevent the Federal Reserve from concealing vital information on its operations from Congress.
“No institution holds more power over the future of the American economy and the value of our savings than the Federal Reserve,” said Dr. Paul. “It’s long past time for Congress to stop shirking its duty and hold the Federal Reserve accountable.”
The legislation is currently cosponsored by Senators Todd Young (R-IN), Mike Lee (R-UT), Ted Cruz (R-TX), Mike Braun (R-IN), Jim Risch (R-ID), Chuck Grassley (R-IA), Roger Marshall (R-KS), John Barrasso (R-WY), and Marsha Blackburn (R-TN).
This legislation would require the nonpartisan, independent Government Accountability Office (GAO) to conduct a thorough audit of the Federal Reserve’s Board of Governors and reserve banks within one year of the bill’s enactment and to report back to Congress within 90 days of completing the audit.
Audit the Fed would repeal current statutory restrictions that prevent a full audit of the Federal Reserve Board and Federal Reserve Banks. If enacted into law, the bill would empower the GAO to fully audit:
- Transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
- Deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
- Transactions made under the direction of the Federal Open Market Committee;
- Discussions or communications among or between members of the Federal Reserve Board and officers and employees of the Federal Reserve System related to the actions listed above.
Americans deserve to be made aware of the practices of the Federal Reserve, whose decisions can result in high levels of inflation and slow economic growth. It is time the Federal Reserve operates in a manner that is transparent and accountable to the taxpayers.
Dr. Paul’s legislation is supported by the following organizations: Ron Paul Institute, FreedomWorks, National Taxpayers Union, Taxpayers Protection Alliance, Frontiers of Freedom Institute, Brownstone Institute, Heritage Foundation, Campaign for Liberty, and Americans for Limited Government.
Full text of the Federal Reserve Transparency Act can be found HERE.
