With the introduction of bills in both the House (H.R. 24) and Senate (S.264) allowing for a GAO audit of the Federal Reserve’s monetary policy, officials at both the Board and regional Fed banks have launched an attack on these efforts. While we should all welcome this debate, it should be one based on facts. Unfortunately some Fed officials have made a number of statements that could at best be called misleading.
For instance Fed Governor Jerome Powell recently claimed “Audit the Fed also risks inserting the Congress directly into monetary policy decisionmaking”. I’ve read and re-read every word of these bills and have yet to find such. H.R. 24/S.264 provide for no role at all for Congress to insert itself into monetary policy, other than Congress’ existing powers. I would urge Governor Powell to point us to which particular part of the bill he is referring to, as I cannot find it.