The Senate voted today on whether to proceed to debate on the Federal Reserve Transparency Act of 2015. Although a majority of 53-44 voted to proceed, the cloture vote fell short of the required 60 votes. The bill has 24 co-sponsors in the Senate, and Sen. Chuck Grassley of Iowa was among the original co-sponsors. The bill would require an audit of the Federal Reserve by the non-partisan Government Accountability Office. Grassley made the following comment on the bill.
“The Federal Reserve has an enormous amount of power over U.S. monetary policy. Fed policy greatly influences everything from the interest charged on a home loan, to the interest paid on a savings account, to the level of inflation in the economy. The Fed’s response to the Great Recession has caused the bank to bear increased risk in complicated and unprecedented ways. This resulted in its balance sheet’s ballooning to around $4.5 trillion from $850 billion prior to the recession. The American taxpayers deserve to understand the risks taken on by the Fed. Also, Congress needs to have a better understanding of the extraordinary actions the Fed has taken so it can conduct effective oversight.
“The public deserves insight into the Fed’s operations and decision-making. Our bill would offer oversight and transparency while also protecting the bank’s independence and authority to set monetary policy. It’s too bad the legislation didn’t move forward today, and I hope we have the chance to consider it again.”
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