U.S. Senate Blocks Bill to Audit the Federal Reserve*
The U.S. Senate failed to advance a piece of legislation on Tuesday afternoon that would require an independent audit of the Federal Reserve bank.
The US Senate failed to advance a piece of legislation on Tuesday afternoon that would require an independent audit of the Federal Reserve bank.
The bill to audit the Federal Reserve would call for two independent auditors to look into its books, including Government Accountability Office (GAO) and another independent auditor. The Federal Reserve, which has more than $4.5 trillion on its balance sheet, is currently only subject to an internal audit.
“The bill was sponsored by Republican presidential candidate Rand Paul. Ahead of the Tuesday vote he stated his “opposition to the lack of accountability of the Federal Reserve… an institution that for too long has been shrouded in secrecy.”
Last week, Federal Reserve Chair Janet Yellen stated her opposition to the audit, and argued such a move would undermine the independence of the organization and could cause fears of inflation.
The bill mainly received support from conservatives in the Senate, though Democratic presidential candidate Bernie Sanders, an opponent of the excessive influence of private finance in the United States, threw his support behind the bill as well.