Congressman Doug Lamborn (CO-05) today voted with a bipartisan majority in the House to pass H.R. 459, "Audit the Fed," a bill that would allow the Government Accountability Office to conduct thorough audits of the Federal Reserve.
Congress has the constitutional authority over the nation's money supply, which it has delegated to the Federal Reserve. However, under current law, Congress is prohibited from looking into how the Fed manages that delegated authority.
"Since the beginning of our nation's current financial crisis in 2008, the Federal Reserve has tripled its balance sheet through an unprecedented series of bailouts and economic interventions. Much of the Fed's activities are off limits to Congress for review.
"This is unacceptable. H.R. 459 will open up the Fed's books for a thorough audit. The American taxpayer deserves to know what is going on with their money."-- Doug Lamborn (CO-05)
Fast Facts on the Federal Reserve
Since 2008, the Fed has tripled its balance sheet to $3 trillion, equivalent to 20 percent of the economy, through a series of bailouts and other interventions.
The Fed lent out nearly $16 trillion over the course of the financial crisis -- more than the size of the entire economy.
[Source: the Federal Reserve Statistical Release, H. 4.1; GAO Report GAO-11-696]
Currently, the GAO cannot audit:
1. Transactions for or with foreign central banks, governments, and international organizations .
2. Deliberations, decisions, or actions on monetary policy matters.
3. Transactions made under the direction of the Federal Open Market Committee.
4. Discussions or communications of the Fed related to 1-3.