Co-sponsored by Rep. Candice Miller (R-Mich.), the Federal Reserve Transparency Act of 2014, which directs the Government Accountability Office to conduct an audit of the U.S. Federal Reserve, was overwhelmingly passed by the House on Wednesday.
“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,” Miller said. “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.”
Miller said public transparency and accountability are fundamental to a free society.
“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,” she said.
The legislation also requires the Comptroller General to submit a detailed report of its findings to Congress within 90 days of completing the audit and it repeals limitations that prevent Congress from reviewing how the Reserve manages its delegated authority.