Thursday, June 28, 2012

Congressional panel clears way for Fed audit bill

A U.S. House of Representatives panel on Wednesday approved a measure that would allow an audit of the Federal Reserve’s monetary policy decisions, a level of scrutiny the centralbank says would compromise its independence.

The measure was proposed by Republican Representative Ron Paul, a long-time critic of the central bank, and has 257 co-sponsors, more than half of all House members.

Its approval by the House Oversight Committee clears the way for a vote in the full House. House Majority Leader Eric Cantor said last month the House would vote on the legislation in July.

“The Fed’s balance sheet now stands at nearly $3 trillion. It is long past time for a real audit,” said Oversight Committee Chairman Darrell Issa.

Compromise its independence? From what? Responsibility?