The House of Representatives has just approved a bill that would authorize the federal government to audit the Federal reserve. The bill may not go anywhere, but a growing number of individuals want more transparency in how the nation's central bank conducts its affairs.
Auditing the Fed
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 impacts daily life regularly with its control of lending and inflation. Many people do not realize how much it affects 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 information is made publicly available by the Federal reserve about its dealings, which has led to many legislators and citizens calling for a bill that would audit the Federal reserve, or rather force the agency to open its books entirely to scrutiny.
Getting house approval
More government agencies might have to start showing their finances to the public soon since the House of Representatives just approved the bill 327 to 98. The bill would require the Federal reserve to open its books specifically. The Federal reserve has been criticized by Representative Ron Paul of Texas who could have been expected to do it since he has not supported the law for some time now.
The basic idea of the bill would allow more access to Fed 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 bureau publishes its balance sheet every week online too. CNN points out that Deloitte and Touche just did an internal audit. The audits are done each year. The idea of the bill is for more immediate access though.
Problem with audit
Congress might end up controlling the Federal reserve if the new Audit the Fed law is passed; Fed Chairman Ben Bernanke is worried about, according to Bloomberg. This might trigger a ton of corruption and manipulation of the Fed, which is a huge concern for Bernanke. He has no problem with more transparency in finances though.
It is not that likely that the bill will become law, Representative Barney Frank said about the law, according to Bloomberg.
Auditing the Fed
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 impacts daily life regularly with its control of lending and inflation. Many people do not realize how much it affects 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 information is made publicly available by the Federal reserve about its dealings, which has led to many legislators and citizens calling for a bill that would audit the Federal reserve, or rather force the agency to open its books entirely to scrutiny.
Getting house approval
More government agencies might have to start showing their finances to the public soon since the House of Representatives just approved the bill 327 to 98. The bill would require the Federal reserve to open its books specifically. The Federal reserve has been criticized by Representative Ron Paul of Texas who could have been expected to do it since he has not supported the law for some time now.
The basic idea of the bill would allow more access to Fed 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 bureau publishes its balance sheet every week online too. CNN points out that Deloitte and Touche just did an internal audit. The audits are done each year. The idea of the bill is for more immediate access though.
Problem with audit
Congress might end up controlling the Federal reserve if the new Audit the Fed law is passed; Fed Chairman Ben Bernanke is worried about, according to Bloomberg. This might trigger a ton of corruption and manipulation of the Fed, which is a huge concern for Bernanke. He has no problem with more transparency in finances though.
It is not that likely that the bill will become law, Representative Barney Frank said about the law, according to Bloomberg.
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