Donald Trump has yet again shown the American people that he is keeping his campaign promises, agreeing to support a bill in favor of auditing the Federal Reserve.
Kentucky senator Rand Paul has attempted to push an audit of the Federal Reserve multiple times, reintroducing his Federal Reserve Transparency Act again on Tuesday. The highly debated legislation would allow for the Government Accountability Office to review the fed’s monetary policy, something many have advocated for in Washington, including Paul, who described the Federal Reserve as being an “institution that has been far too long shrouded in secrecy”.
“No institution holds more power over the future of the American economy and the value of our savings than the Federal Reserve, yet Fed Chair Yellen refuses to be fully accountable to the people’s representatives. The U.S. House has responded to the American people by passing Audit the Fed multiple times, and President-elect Trump has stated his support for an audit. Let’s send him the bill this Congress”, said Sen. Paul in a press release.
Federal Reserve Chairwoman Janet Yellen has strongly opposed the bill, arguing that it would subject the Fed to excessive political pressure. However, with a Donald Trump presidency, the bill may become a reality as Republicans, who are overwhelming critical of the Federal Reserve, now control both the House and the Senate.
In February of 2016, Trump tweeted his support for auditing the Federal Reserve.
If the ‘Audit the Fed’ bill passes, the Government Accountability Office will have one year to audit the Federal Reserve’s Board of Governors and reserve banks, and 90 days to report back to Congress.
THE HILL, January 4, 2017
Controversial legislation to subject the Federal Reserve’s monetary policy powers to outside scrutiny is getting new life in Washington.
Rep. Thomas Massie (R-Ky.) and Sen. Rand Paul (R-Ky.) have re-introduced legislation to “Audit the Fed,” after a similar effort stalled in the last Congress.
But such a proposal, which has been vocally opposed by Federal Reserve Chairwoman Janet Yellen, may face its best odds ever of becoming law. Both chambers are controlled by Republicans long critical of the Fed’s policies, and President-elect Donald Trump has heaped scorn on the central bank since the beginning of his presidential campaign.
Paul specifically mentioned Trump in a statement about the bill Wednesday, making clear the measure’s proponents believe they have an ally in their cause coming to the White House.
“The U.S. House has responded to the American people by passing Audit the Fed multiple times, and President-elect Trump has stated his support for an audit. Let’s send him the bill this Congress,” said Paul.
Under the bill, the Fed’s monetary policy deliberations could be subject to outside review by the Government Accountability Office.