Today, Rep. Michael G. Grimm (R,C-NY) voted for the "Audit the Fed" bill (H.R. 459), which allows for a full audit of the Federal Reserve. It passed the House with a bipartisan vote of 327 to 98.
"The "Audit the Fed' bill will allow us to bring more transparency to the Federal Reserve and gain a clearer understanding of how its decisions impact average American citizens," said Rep. Grimm. "As the central bank of the United States, the Fed has great influence over our economy and markets by exercising its power to adjust long and short-term interest rates; and its monetary policies over the last several years have even been linked to high energy and food prices. I believe the American people have a right to know how the Fed's actions affect their daily lives and that Congress must take its oversight role seriously. It is for these reasons that I strongly support the "Audit the Fed' bill and was proud to join my colleagues in passing it through the House with bipartisan support."
H.R. 459 would allow GAO to conduct a full audit within 12 months of enactment, by removing four restrictions on GAO audits of the Federal Reserve which pertain to monetary policy. 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.
Congress has constitutional authority over the nation's money, which it has delegated to the Fed, but Congress is prohibited under current law from looking into how the Fed manages that delegated authority. Since the 2008 financial crisis, the Fed has tripled its balance sheet to $3 trillion, equivalent to 20% of the economy, through an unprecedented series of bailouts and economic interventions.
Rep. Grimm is a cosponsor of H.R. 459, which was authored by Rep. Ron Paul (R-TX).