WASHINGTON, D.C. – With the U.S. Senate expected to vote on S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, this week, U.S. Senator Rand Paul (R-KY) today announced he will introduce his “Audit the Fed” bill, which would authorize the first-ever thorough audit of the Federal Reserve System, as an amendment to the financial reform legislation.
“While we have made great strides in reviving our economy through curbing overzealous regulation and cutting taxes, lasting prosperity will escape us if we do not hold the enabler of big government and our astronomical national debt accountable. It’s time for the Senate to side with the American people by removing the shackles on congressional oversight and lifting the Fed’s veil of secrecy. It’s time for us to pass Audit the Fed,” said Dr. Paul.
In January 2017, Dr. Paul reintroduced the Federal Reserve Transparency Act (S. 16), widely known as “Audit the Fed,” to prevent the Federal Reserve from concealing vital information on its operations from Congress. A year earlier, a bipartisan Senate majority voted 53-44 in support of Audit the Fed, falling just short of invoking cloture.
Audit the Fed 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 passage and to report back to Congress within 90 days of completing the audit.
The legislation would amend section 714b of Title 31 of the U.S. Code to allow 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; or
- a part of a discussion or communication among or between members of the Board and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.
The Federal Reserve Monster by Wallace Campbell and Sam H. Clark