In an effort to provide Americans greater insight into major financial decisions affecting the overall health of our economy, U.S. Rep. Blaine Luetkemeyer (MO-9) today voted in favor of legislation that would require the U.S. Federal Reserve to conduct a first-ever complete audit of its books and provide details about its monetary policy discussions.
"Policy decisions made by the Federal Reserve have an impact on the lives of hard-working folks across our country, which is why I believe the decision-making process of the Fed needs to be open to Americans from every walk of life who are affected by its decisions," Luetkemeyer said. "Clearly, we need more transparency in our economic system, and this is a significant step in the right direction especially with all the recent activity involving the Fed including two rounds of so-called quantitative easing and other initiatives."
The bill, known as the Federal Reserve Transparency Act (H.R. 459), specifically directs the Comptroller General to complete, before the end of 2012, an audit of the Board of Governors of the Federal Reserve System and of the Federal Reserve banks, followed by a detailed report to Congress. The legislation also repeals specified limitations on such an audit.
The Federal Reserve's mission statement implicitly states that the "central bank of the U.S. provides the nation with a safe, flexible, and stable monetary and financial system." The legislation is sponsored by U.S. Rep. Ron Paul of Texas. Luetkemeyer is one of more than 270 co-sponsors of the legislation, which heads next to the U.S. Senate for consideration.