Congressman Pearce issued the following statement on the House of Representatives' passage of H.R. 459, legislation which would mandate a complete audit of the Federal Reserve Banks and the Board of Governors of the Federal Reserve System (the Fed) to be done by the Government Accountability Office (GAO). Pearce voted in favor of the legislation which the House approved in a vote of 327-98.
"While I appreciate Chairman Bernanke's verbal commitment to transparency, the American people deserve full access to information on how tax dollars are being spent. Given the Fed's influence on U.S. financial policy and its lack of oversight, many Americans are concerned that it has become a hindrance to economic growth and prosperity."
Established under the Federal Reserve Act of 1913, the Fed was created with the intention of preventing financial disruptions by supervising and regulating the banking industry. Since that time, the role of the Fed has expanded under numerous provisions, such as the Banking Act of 1935, the Employment Act of 1946, the Bank Holding Company Act of 1956, and others.