Just a few years ago, many Americans likely had never even heard of the Federal Reserve, America’s central bank. Yet with the institution rising in prominence (or infamy) during our ongoing inflation crisis, it’s finally starting to get scrutiny from the wider public.
But some from the libertarian-Republican camp have been railing against the Federal Reserve for a long time now, and are continuing to do so. GOP Reps. Brad Finstad, Thomas Massie, Don Bacon, Jim Jordan, Byron Donalds, Tim Burchett, and others have introduced the Federal Reserve Transparency Act. It would instruct the Government Accountability Office (GAO) to conduct an official audit of the Federal Reserve.
“This bill would require the GAO to complete, within 12 months, an audit of the Federal Reserve Board and Federal Reserve banks,” Financial Regulation News reports. “Further, it would allow the GAO to audit the Federal Reserve Board and Federal Reserve banks regarding international financial transactions; deliberations, decisions, or actions on monetary policy matters; transactions made under the direction of the Federal Open Market Committee; and discussions or communications among Federal Reserve officers, board members, and employees regarding any of these matters.”
“One of the fundamental responsibilities of Congress is to conduct oversight over federal agencies and programs, which includes the Federal Reserve,” Finstad said. “The Fed is ultimately responsible for determining the monetary policy that directs the world’s largest economy and ought to be accountable to the people’s representatives. I support the Federal Reserve Transparency Act because Americans deserve transparency from the institution that is responsible for managing the nation’s money supply.”
This bill will probably not get signed into law anytime soon, with Democrats controlling the Senate and likely to oppose such an effort. But politics aside, auditing the Federal Reserve is something everyone really ought to support on its merits.
The Fed wields so much influence over the economy that the U.S. Fed chair is often referred to as the second most-powerful person in the world—not just America—after the U.S. president. All Americans should want an institution that powerful to be held accountable for its actions.
Especially because those actions haven’t exactly been stellar of late. The Fed falsely predicted that our inflation woes would be “transitory” and would quickly go away. They haven’t. Their own decision to print trillions of dollars out of thin air is the main reason we’ve had an inflation crisis in the first place. And they’re actually working to expand their powers into new areas, like climate change and racial activism.
Remember, no one voted for these people. They aren’t accountable to voters in any direct way, even though they’re wielding influence over all of our lives and livelihoods—and doing so quite poorly.
Kudos to Massie and company for pushing for Congressional accountability. It’s the absolute least the American people deserve.