house committee The House voted Wednesday to open up the Federal Reserve’s core monetary policy decisions to the scrutiny of the federal government.

The vote marks the latest clash between House Republicans, wary of the unprecedented moves the central bank has taken since the financial crisis to stabilize the economy, and Fed Chairman Ben Bernanke, who has warned the bill could expose the Fed to political pressures.

On Wednesday, the House on a 327-98 vote, passed a bill that would permit the government to review the policy deliberations that are at the heart of the central bank’s mission.

A senior Democratic Senate leadership aide said there are no plans to bring the bill up in the Senate, but didn’t rule out an attempt by Republicans to seek a vote on the measure as part of another piece of legislation. The Senate would be almost certain to defeat it given the Democratic majority in the chamber.

The Fed is already reviewed by an outside, independent audit firm, whose examination of all Fed financials is published in the bank’s annual report. The Government Accountability Office also audits the Fed’s financials, including those of its monetary-policy operations, but it doesn’t evaluate the policy decisions behind them. The bill introduced by longtime Fed critic Rep. Ron Paul (R., Texas) would eliminate that exemption for the Fed’s closed-door discussions of monetary policy.

“It’s really not an audit without this,” Mr. Paul said at a hearing with Mr. Bernanke last week.

House GOP lawmakers have argued the Fed should be more transparent as the size of its portfolio of assets has ballooned. The Fed’s balance sheet has tripled since the financial crisis as it bought trillions of dollars’ worth of bonds as part of its efforts to make borrowing cheaper to spur lending and investment.

Republicans have warned that the Fed’s easy-money policies could ignite inflation if the economic recovery accelerates, even though inflation this year is below the Fed’s target level.

Mr. Bernanke has pushed back, arguing that exposing the Fed’s internal deliberations over monetary policy could tempt lawmakers to meddle in the process. Central banks are more effective at supporting the economy and keeping prices stable if they make decisions based purely on economic reasons, he said last week at the House hearing.

While some Democrats support the bill, others have argued the measure could politicize the Fed at a time when it is unpopular with many Republicans.

“This is a way to shake your fist at the big bad Fed, and it’s not a good way,” Rep. Barney Frank (D., Mass.), the top Democrat on the House Financial Services Committee, said on the House floor Tuesday.

The Fed already releases minutes of its policy meetings after three weeks and full transcripts after five years. The central bank has taken other steps to become more transparent recently: Mr. Bernanke now holds regular press conferences and Fed officials began this year releasing their estimates of where interest rates will be over three years.

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14 Responses to “House Passes Ron Paul’s ‘Audit the Fed’ Bill”

  1. theghostvoices says:

    Ron Paul is still …
    Ron Paul is still running for pres !

  2. TheMARINEFORPBR says:

    Do you think he …
    Do you think he wants/has handed over his legacy to his son Rand?

  3. truthfromtheword says:

    Ron Paul is the …
    Ron Paul is the economic boss.

  4. bdbmwer says:

    I stopped as soon …
    I stopped as soon as she told everyone he was a once presidential candidate. he still is lamestream media propoganda. Congrats to Dr. Paul If you want to know why this is a Huuuuuge deal read this : iamthewitness DarylBradfordSmith_Rothschild htm fill in what I had to take out to post

  5. BinALA says:

    Dr. P gettin’ …
    Dr. P gettin’ done. 

  6. AbPocalypse says:

    Audit The Fed – …
    Audit The Fed – Achievement Unlocked

  7. tomace087 says:

    I won’t be happy …
    I won’t be happy until its signed but at least this dudes trying… Got my respect, Dr. Paul

  8. ro1nocerowster says:

    The man who set …
    The man who set humanity free from Fraud – Thank you Ron Paul – You are the planets true freedom fighter. Peace and Light be yours forever!

  9. yourlocalpreacher says:

    Harry Reid said …
    Harry Reid said that Ron Paul’s Audit the Fed bill will not be brought up for a vote in the Senate. Let him know we see his two faces. Here’s his office number. Phone: 202-224-3542 / Fax: 202-224-7327

  10. Krumpaul says:

    I think RON PAUL is …
    I think RON PAUL is the only politician that has Common Sense!!!

  11. DuttonWebb says:

    well done RON!!!
    well done RON!!!

  12. trillionaire619 says:

    RON PAUL IS MY HERO …
    RON PAUL IS MY HERO BRAVO! BRAVO!

  13. sandyj321 says:

    Her intro. “the …
    Her intro. “the congressman and the “once” presidential candidate”. Isn’t he still running for Republican Nominee? I didn’t realize it was over and the Republican Candidate had already been nominated. Has that already happened? I assumed since there was so much election fraud in so many states that the nominee would have to be voted on in Tampa. If there isn’t a vote in Tampa then what is the point of the 5 million dollar party? I think we are too broke to just ‘party’ for NO REASON

  14. enlightenfawn says:

    Thank you for …
    Thank you for posting this:)
    It’s so Hard for people to understand these Facts because ‘they’ Don’t teach it in the Public school’s, etc.
    The concept is Detailed, and Habits Are Hard to break! Just Don’t let satan succeed !
    Go by God/JC’s Words, Prescriptions (Native plants).
    Human Beings from the Planet Earth (Heaven) :
    Build your Own Kingdom and Nation – It Is Our Godly Right + ! *

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