Some people are not enamored of the Federal reserve, the separate government bureau that determines the nation's monetary policy and sets interest rates. The House of Representatives has just passed a stringent bill to audit the Fed, though it's not prone to go anywhere.
Auditing the Federal reserve
The Fed, since its creation in 1913, has held sway in ways that many don't realize impact daily life. It is the country's central bank, and controls the country's cash supply, inflation rates and, through that, the costs of lending money. In short, how much a dollar is worth and just how expensive it is for banks to lend mortgages, installment loans and so forth, is part of what the Federal reserve controls, among other things.
A ton of legislators and citizens have asked that the Fed be audited, which is why a brand new bill is being considered that would require the Fed to open its book up to the public. It is an "independent government agency" technically meaning that it is part of the government but is a private business still.
Approved in House
A bill has just passed the House of Representatives, according to ABC, that would "open the books" of the Fed, possibly to the Government Accountability Office or some other agency. The bill was, naturally, authored and sponsored by Representative Ron Paul of Texas, a constant critic of "the Fed." The bill approved 327 for to 98.
The bureau has been taking care of finances by publishing its balance sheet every week and by getting internal audits complete yearly. Deloitte and Touche was the firm that did the most recent audit, according to CNN. One problem is that it takes way too long to get records from meetings where the agency decides to increase inflation. It takes three weeks to release meeting minutes and five years for transcripts to come out. The bill is being put together to allow urgent access to the policy decisions, especially those relating to money.
Problem with audit
Congress might end up controlling the Federal reserve if the brand new Audit the Fed law is passed; Federal reserve Chairman Ben Bernanke is worried about, according to Bloomberg. This could trigger a lot of corruption and manipulation of the Federal reserve, which is a massive concern for Bernanke. He has no issue with more transparency in finances though.
The bill is unlikely to pass in the Senate. Bloomberg quoted Representative Barney Frank as saying "no one here expects it to become law."
Auditing the Federal reserve
The Fed, since its creation in 1913, has held sway in ways that many don't realize impact daily life. It is the country's central bank, and controls the country's cash supply, inflation rates and, through that, the costs of lending money. In short, how much a dollar is worth and just how expensive it is for banks to lend mortgages, installment loans and so forth, is part of what the Federal reserve controls, among other things.
A ton of legislators and citizens have asked that the Fed be audited, which is why a brand new bill is being considered that would require the Fed to open its book up to the public. It is an "independent government agency" technically meaning that it is part of the government but is a private business still.
Approved in House
A bill has just passed the House of Representatives, according to ABC, that would "open the books" of the Fed, possibly to the Government Accountability Office or some other agency. The bill was, naturally, authored and sponsored by Representative Ron Paul of Texas, a constant critic of "the Fed." The bill approved 327 for to 98.
The bureau has been taking care of finances by publishing its balance sheet every week and by getting internal audits complete yearly. Deloitte and Touche was the firm that did the most recent audit, according to CNN. One problem is that it takes way too long to get records from meetings where the agency decides to increase inflation. It takes three weeks to release meeting minutes and five years for transcripts to come out. The bill is being put together to allow urgent access to the policy decisions, especially those relating to money.
Problem with audit
Congress might end up controlling the Federal reserve if the brand new Audit the Fed law is passed; Federal reserve Chairman Ben Bernanke is worried about, according to Bloomberg. This could trigger a lot of corruption and manipulation of the Federal reserve, which is a massive concern for Bernanke. He has no issue with more transparency in finances though.
The bill is unlikely to pass in the Senate. Bloomberg quoted Representative Barney Frank as saying "no one here expects it to become law."
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