House Passes Measure to Require Audit of Federal Reserve

Press Release

U.S. Representative Candice Miller (MI-10) issued the following statement after the House overwhelmingly passed legislation she cosponsored, the Federal Reserve Transparency Act of 2014 (H.R. 24), that directs the Government Accountability Office (GAO) to conduct an audit of the U.S. Federal Reserve:

"As the central banking system of the U.S., the Federal Reserve is one of the most important pillars of our economy. Unfortunately, it operates in secrecy, denying public access to basic information pertaining to its monetary policy decisions, which have an immense impact on every American. It creates money out of thin air, it can make purchases of questionable assets, and it can loan hundreds of billions of dollars to foreign governments and central banks -- all out of the sight of the American people and their elected representatives.

"Yesterday, the House passed an important measure that would add much needed transparency and accountability to the Federal Reserve's operations by requiring the GAO to audit the agency and present its finding to Congress and the American people.

"Public transparency and accountability are fundamental to our liberty and free society where the people rule, and the primary agency that manages U.S. monetary policy should not be an exemption. I urge our colleagues in the Senate to join us in supporting this bill, which provides for a long overdue audit of the Federal Reserve."

The Federal Reserve Transparency Act of 2014 (H.R. 24) requires the Comptroller General (GAO) to complete an audit of the Board of Governors of the Federal Reserve System and the Federal Reserve Banks within 12 months of the bill's enactment. It also requires the Comptroller General to submit to Congress, within 90 days of completing the audit, a detailed report of its findings and conclusions. Finally, it repeals certain limitations currently in place that prevent Congress from reviewing how the Reserve manages its delegated authority. This bill previously passed in the 112th Congress by a vote of 327-98.

Source