Senator Rand Paul Introduces A New Bill To Audit The Federal Reserve

| by Amanda Andrade-Rhoades

Republican Senator Rand Paul of Kentucky re-introduced a bill to audit the Federal Reserve on Wednesday.

Paul, a 2016 presidential hopeful, is moving to continue last year’s congressional efforts to subject the Fed to an audit and limit the central bank’s authority, Reuters reported.

Paul’s bill was co-sponsored by 30 other lawmakers, including Republicans and Democrats. The move was preceded by Republican Congressman Massie Thomas of Kentucky introducing a similar bill to the House of Representatives. 

The Fed’s monetary policy discussions have been legally exempt from reviews by the Government Accountability Office since 1978, however it is subject to some other audits. The Fed has argued a full audit would reveal too much of their monetary policy decisions made by the Federal Open Market Committee, complicating public communications, hurting their credibility and creating market instability.

Though previous attempts to audit the Federal Reserve have fallen flat before, the Republican’s dominance over the House and Senate may mean this new legislation could pass with more ease. However, it is unlikely that President Obama will support any major changes to the Fed.

Earlier this month, Republican efforts to permanently reserve a Fed board seat for someone with community banking experience passed into law. The provision was attached to a terrorism insurance bill that Obama signed. 

Source: Reuters Image via Gage Skidmore/Flickr