House Approves Legislation Requiring Audit of Federal Reserve

Congressman Darrell Issa

A statement issued by the House Committee on Oversight & Government Reform (COOGR) says that its chairman, Congressman Darrell Issa (R-CA) and a bipartisan majority in the House of Representatives have passed legislation requiring an independent audit of the Federal Reserve (Fed).  The statement says the bill was approved by a vote of 327 to 98, and that the bill had previously advanced from the Committee on Oversight and Government Reform by bipartisan voice vote on June 27.

Oversight Committee Chairman, Representative Darrel Issa says:

“Since the 2008 financial crisis, the Fed has tripled its balance sheet to $3 trillion, equivalent to 20% of the economy, through an unprecedented series of bailouts and economic interventions...Policy choices made by unelected Fed bureaucrats have the potential to dramatically affect the fiscal policy of the nation, the global economy, and the lives of everyday Americans.  The public has a right to understand how and under what terms decisions were made and who is responsible..."

The Committee statement asserts that he bill, H.R. 459,

*will ensure that Federal Reserve decisions on monetary policy, transactions with foreign banks and Federal Open Market Committee transactions are made transparent to Congress and the public.

*requires a one-time audit to be completed by the Government Accountability Office (GAO), the government’s non-partisan watchdog agency.

*requires that a report be submitted to Congress on the results of the audit within 12 months of enactment.

Additionally, the C.O.O.G.R statement says:

"...The 'audit the Fed' bill makes changes to current law which prohibits GAO from conducting a full audit of key Fed operations.   It also allows for audits of not just financial statements, which are currently available, but also of the Fed’s balance sheet, which contains currently unaudited monetary policy operations and lending to foreign central banks.  The bill makes no changes to the Fed’s unique and independent reporting and decision-making authority..."

Chairman Issa:




You can see a Briefing Fact Sheet On the Bill HERE...

You can see the entire BILL HERE...