Government Reform Committee unanimously passed Ron Paul's latest
"Audit the Fed" bill, H.R.
The bill would eliminate certain restrictions that now exist on
any audits done on the Federal Reserve from 31 U.S.C.
714, such as:
Audits of the Board and Federal reserve banks may notAgain, the above are the existing restrictions that H.R. 459, if
(1) transactions for or with a foreign central bank,
government of a foreign country, or nonprivate international
(2) deliberations, decisions, or actions on monetary policy
matters, including discount window operations, reserves of member
banks, securities credit, interest on deposits, and open market
(3) transactions made under the direction of the Federal
Open Market Committee; or
(4) a part of a discussion or communication among or
between members of the Board and officers and employees of the
Federal Reserve System related to clauses (1)–(3) of this
it eventually passes the full House and then becomes law in
unaltered or unamended form, will eliminate from Fed audits. By the
time his last try at this got in some form into a final bill, even
Ron Paul himself
wouldn't vote for that whole bill.
explains what happened today:
The bill, sponsored by Rep. Ron Paul (R-Texas), was advanced byFor more on the bill's purpose, see this from the
the committee on a bipartisan voice vote with no vocal
The measure, which has garnered 257 co-sponsors from both
parties, would require the Government Accountability Office (GAO)
to conduct a full audit of the Fed's operations, including its
monetary policy deliberations.
House GOP leaders have previously signaled that Paul's bill
would garner floor attention sometime in July. A similar measure
pushed by the End the Fed author was part of the
Dodd-Frank financial reform law when it was passed by the House,
but was later trimmed to require a GAO study of just the Fed's
emergency lending operations during the financial crisis, and the
potential for conflicts of interest on the boards of the regional
Before the bill was cleared by the committee, however, ranking
member Elijah Cummings (D-Md.) attempted to introduce an amendment
that would prevent the GAO from auditing the Fed's deliberations on
monetary policy. Cummings withdrew the amendment after Chairman
Darrell Issa (R-Calif.) voiced opposition, saying it "essentially
guts this bill."
dedicated "Audit the Fed" web site.
There is a companion bill in the Senate, the “Federal Reserve
Transparency Act of 2011” (S.202), introduced by Sen. Rand
Paul, not yet out of committee. In an emailed press release
this morning, Sen. Paul said:
“Today, I applaud the unanimous passage of Audit the Fed out ofWhen Ron Paul is gone from Congress next year, who will be left
committee and commend House leadership for promising a vote on
Audit the Fed next month,” Sen. Paul said. “It is important that we
get our economy growing again through savings and investment, not
more debt and deficit spending. But we can’t turn the economy
around until we fix the root of the problem: an unaccountable
Federal Reserve. A complete and thorough audit of the Fed will
finally allow the American people to know exactly how their money
is being spent by Washington.”
“I have introduced similar legislation in the Senate and will
continue to fight on the frontlines of this battle to get Audit the
Fed passed through Congress,” he continued.
who believes in not only auditing but eventually ending the Fed?
Hopefully, Michigan Republican Justin Amash, who calls for such an
end in this talk at an International Students for Liberty
My November 2009 Reason magazine feature on the
Reserve movement. My new book
Ron Paul's Revolution: The Man and the Movement He