House Finance Committee Votes To Audit Federal Reserve
Christopher Weber
Correspondent
Posted:
11/19/09
A House panel has voted to approve legislation introduced by Texas Rep. Ron Paul that would allow Congress to audit the Federal Reserve.
The provision that passed the House Financial Services Committee Thursday would direct the Government Accountability Office to examine the Fed's monetary policy, specifically how much it lends to financial institutions, Marketwatch reported. The proposed audit would not include a review of the central bank's policy deliberations.
The provision that passed the House Financial Services Committee Thursday would direct the Government Accountability Office to examine the Fed's monetary policy, specifically how much it lends to financial institutions, Marketwatch reported. The proposed audit would not include a review of the central bank's policy deliberations.
It's the first time in its 95-year history that the Fed would be subjected to government scrutiny.
The central bank's secrecy came under criticism last year when it used its emergency powers to pump hundreds of billions of dollars into the struggling financial sector. The Fed was not required to specify which institutions received the money.
The committee will vote on the entire bill Dec. 1.