The Federal Reserve would be held accountable for the $3 trillion in bailouts and economic interventions it has undertaken since 2008, through an independent audit ordered by the U.S. House of Representatives today in a bipartisan 327-98 vote. 89 Democrats voted with 238 Republicans to approve H.R. 459, which requires a full audit be completed before the end of 2012.
"Americans have a right to know where the Fed has managed to spend 20% of our national economy in just three years," says Carter. "These decisions were made by unelected officials. While the House recognizes the independence of the Fed in setting monetary policy, Congress and the public deserve full transparency on where every nickel of those funds has been spent. Too many Americans have justifiably become very suspicious of how their government is handling the nation's finances. The best way to relieve those doubts is complete honesty as confirmed by independent audit. I am very pleased that this House is taking the steps to make that happen through exercise of its oversight responsibilities."
Under current law the General Accounting Office is prohibited from conducting a full audit of Fed operations. H.R. 459 overturns those restrictions and gives auditors full access to monetary policy operations and lending to foreign central banks for the first time since the Fed was created. The results of the audit must be submitted to Congress within 12 months of enactment of the bill.