Thursday, June 28, 2012
Congressional panel clears way for Fed audit bill
A U.S. House of Representatives panel on Wednesday approved a measure that would allow an audit of the Federal Reserve’s monetary policy decisions, a level of scrutiny the central bank says would compromise its independence.
The measure was proposed by Republican Representative Ron Paul, a long-time critic of the central bank, and has 257 co-sponsors, more than half of all House members.
Its approval by the House Oversight Committee clears the way for a vote in the full House. House Majority Leader Eric Cantor said last month the House would vote on the legislation in July.
“The Fed’s balance sheet now stands at nearly $3 trillion. It is long past time for a real audit,” said Oversight Committee Chairman Darrell Issa.
The central bank’s balance sheet has ballooned to about $2.8 trillion from around $800 billion before the 2007-2009 financial crisis as the central bank bought Treasury securities and mortgage-related debt to drive borrowing costs lower and boost economic growth.
Similar legislation was approved by the House in 2010 but was watered down in the broad Dodd-Frank financial reform legislation approved in July of that year.
Ron Paul’s son Senator Rand Paul has introduced a companion bill in the 100-member Senate that has 20 co-sponsors.
The central bank, the nation’s lender of last resort, has come under bipartisan criticism for its role in bank bailouts and its unconventional efforts to support the weak economy.
Full article: http://www.reuters.com/article/2012/06/27/us-usa-fed-audit-idUSBRE85Q1LM20120627
|
|
Tweet |
|
|
Add comment
Fill out the form below to add your own comments