Today, the House of Representatives passed H.R. 459, the Federal Reserve Transparency Act that would allow the Government Accountability Office to conduct a full audit of the Fed, particularly its monetary policy decisions. This bipartisan effort, cosponsored by Congresswoman Lynn Jenkins, will increase oversight over the Federal Reserve's management of trillions of taxpayer dollars.
"The Federal Reserve lent out $16 trillion dollars during the financial crisis--that is larger than the entire U.S. economy, or worse, our staggering federal debt. Congress holds the purse, but is currently prohibited from looking into where all this money went.
"It's our responsibility to understand how the Fed manages these funds, particularly when it comes to monetary policy. Monetary policy affects every single American through inflation and changes in interest rates, both of which can have a direct impact on economic growth and unemployment.
"Current monetary policy audits of the Fed are insufficient. Most Fed operations consist of transactions with foreign, central banks. Yet, they are exempt from review, along with emergency lending actions, and other monetary policy operations.
"Just like when corruption is suspected, we should "follow the money". With a historic, sovereign debt crises brewing in Europe, it is critical that we look closely at our own balance sheet. As a CPA, I know we need more transparency in Washington, and it should start with the Federal Reserve."