Audit the fed bill: U.S. House passes measure that would open Fed policy to scrutiny

Originally published: July 26, 2012 8:28 AM
Updated: July 26, 2012 8:50 AM
By REUTERS

Legislation to subject the Federal Reserve's monetary policy to audits sailed through the U.S. House of Representatives on Wednesday although the measure is expected to die in the Democrat-controlled Senate. The legislation, written by Republican representative Ron Paul, whose anti-Fed crusade prompted a presidential bid and his grass-roots folk-hero status, passed the House by a 327-98 vote on Wednesday, exceeding the two-thirds majority needed. Eighty-nine Democrats joined 238 Republicans to approve it.

Fed officials have long fought the audit bill, arguing it would compromise their independence. Chairman Ben Bernanke told House lawmakers last week it would open the door to a "nightmare scenario" of political meddling in monetary policy decisions.

The vote showed bipartisan support in the House for greater scrutiny of the U.S. central bank's powers which, were expanded to help it tackle the financial crisis.
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