House Republicans sponsor bill that would direct GAO to examine the Fed

Financial Regulation News | Dave Kovaleski

January 23, 2023

U.S. Reps. Brad Finstad (R-MN) and Thomas Massie (R-KY) are among a group of House Republican lawmakers sponsoring a bill that would direct the U.S. Government Accountability Office (GAO) to conduct an examination of the Federal Reserve Board and the Federal Reserve banks.

This bill would require the GAO to complete, within 12 months, an audit of the Federal Reserve Board and Federal Reserve banks. Further, it would allow the GAO to audit the Federal Reserve Board and Federal Reserve banks regarding international financial transactions; deliberations, decisions, or actions on monetary policy matters; transactions made under the direction of the Federal Open Market Committee; and discussions or communications among Federal Reserve officers, board members, and employees regarding any of these matters.

“One of the fundamental responsibilities of Congress is to conduct oversight over federal agencies and programs, which includes the Federal Reserve,” Finstad said. “The Fed is ultimately responsible for determining the monetary policy that directs the world’s largest economy and ought to be accountable to the people’s representatives. I support the Federal Reserve Transparency Act because Americans deserve transparency from the institution that is responsible for managing the nation’s money supply.”

A total of 28 House Republicans have cosponsored the bill.