It’s one of the objections we most encounter when talking about Audit the Fed.
“The Fed’s already audited.”
Even the Fed itself claims it’s “subject to several levels of audit and review.”
So does that settle it? Open and shut case?
*Spoiler alert*
NO!
Last week, Dr. Paul emailed you with an Audit the Fed update and a link to several resources to help you spread the word and recruit more support for this historic effort.
One of those resources is an updated “Audit the Fed F.A.Q.” based on one that was created while I worked as Legislative Director in Dr. Paul’s congressional office.
And it directly tackles this “Fed’s already audited” talking point.
So to borrow from Paul Harvey, what’s the rest of the story?
Here’s what our F.A.Q. has to say:
2.) Isn’t the Fed already audited?
Not fully. The Fed’s financial statements are audited annually, but the Fed’s monetary policy operations are exempt from audit. Congress’ investigative arm, the Government Accountability Office (GAO), is currently prohibited by law from examining discount window and open market operations; agreements with foreign governments and central banks; and Federal Open Market Committee (FOMC) directives. It is precisely this information that should be made public.
The American people must know how and why Fed officials expand the money supply and set interest rates. It is not enough for the Fed to simply provide its updated balance sheet after crucial decisions and transactions already have occurred. Audit the Fed allows the GAO to audit the Fed’s monetary policy operations and directs the GAO to report the audit results to Congress within a year of the bill’s passage.
And one more:
4.) Hasn’t the Fed already published details of its emergency bank lending?
Yes, but only partially. The Fed was required by the Dodd-Frank Act to disclose data from its emergency credit lending facilities created during the financial crisis. Most of the data on its other activities, such as open market operations and discount window lending, have only been published as a result of lawsuits – not because of Congressional action. Dodd-Frank requires this information to be disclosed going forward, but with a two-year time lag and with the GAO restricted to auditing only the procedural components of any programs. Audit the Fed grants the GAO and Congress access without special exemptions and ensures that ALL of the Fed’s lending actions will be subject to oversight.
C4L has even heard that Senate Majority Leader Harry Reid’s staff has told callers that the Fed’s already audited, and that’s why the senator hasn’t brought up Audit the Fed for a vote.
But it’s clear Senator Reid doesn’t really have any excuse to not hold a Senate vote on a full Fed audit.
(And, if Senator Reid really does believe the Fed is already fully audited, it is odd he didn’t say that when asked about Audit the Fed in a campaign debate in 2010. Instead, candidate Reid said he supported Audit the Fed legislation, the very legislation his staff is now saying is unnecessary!)
You can help shatter myths about the Fed.
Click here to get our Audit the Fed F.A.Q., along with other resources including a half-page flier and a fact sheet.
And be sure to call your senators at 202-224-3121 today and urge them to push for a roll call vote on S. 209 or its House-passed counterpart, H.R. 24, during Congress’ upcoming Lame Duck session.
Thank you so much for helping Campaign for Liberty shine a spotlight on the Federal Reserve!
In Liberty,
Norm Singleton
Vice President of Policy
P.S. Can you chip in $5 or $10 to help C4L mobilize Americans on Audit the Fed and other core liberty issues?
If so, click here to donate today!
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