WASHINGTON – Sen. Chuck Grassley (R-Iowa) joined Sen. Rand Paul (R-Ky.) in reintroducing the Federal Reserve Transparency Act, legislation to hold the U.S. central bank accountable to the American people.

“The Fed’s actions significantly affect our economy and Americans’ spending flexibility. It only makes sense that Congress and the taxpayer have insight into the factors that influence inflation and interest rates, which directly impact Iowans’ pocketbooks. Our bill would provide a sensible window into Fed practices,” Grassley said. 

“No institution holds more power over the future of the American economy and the value of our savings than the Federal Reserve,” Paul said. “It’s long past time for Congress to stop shirking its duty and hold the Federal Reserve accountable.”

The Federal Reserve Transparency Act would require the nonpartisan, independent Government Accountability Office (GAO) to thoroughly audit the Federal Reserve System’s Board of Governors and reserve banks within one year of enactment and report back to Congress within 90 days thereafter. Specific areas that would be subject to GAO auditing follow: 

  • Transactions for or with a foreign central bank, foreign government or nonprivate international financing organization;
  • Deliberations, decisions or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits and open market operations;
  • Transactions made under the direction of the Federal Open Market Committee;
  • Discussions?or communications?among or between members of the?Federal Reserve?Board and officers and employees of the Federal Reserve System related to?the actions listed above.?

Grassley and Paul are joined by Sens. Todd Young (R-Ind.), Mike Lee (R-Utah), Ted Cruz (R-Texas), Mike Braun (R-Ind.), Jim Risch (R-Idaho), Roger Marshall (R-Kan.), John Barrasso (R-Wyo.) and Marsha Blackburn (R-Tenn.).

Stakeholder supporters include FreedomWorks, National Taxpayers Union, Taxpayers Protection Alliance, Frontiers of Freedom Institute, the Ron Paul Institute, Brownstone Institute, Heritage Foundation, Campaign for Liberty and Americans for Limited Government. 

Bill text is available HERE.

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