Congressman Gosar Votes to End Business as Usual and “Audit the Fed”

| July 27 2012
Christopher Cook

WASHINGTON, D.C. – Today, Congressman Paul Gosar (R-AZ) voted for the Federal Reserve Transparency ActH.R. 459.  This bill, which was introduced by Congressman Ron Paul (R-TX) and co-sponsored by Congressman Gosar, passed the U.S. House of Representatives by a bipartisan vote of 327 to 98.

Congressman Gosar played an active role in advancing the “audit the fed” legislation to the House floor.  In addition to being an early cosponsor of the legislation, he was instrumental in passing the legislation through the House Oversight and Government Reform Committee.

“The decisions made and executed by the Federal Reserve’s Board of Governors affect the monetary policy of the entire nation, yet for too long these activities have been carried out in secret,” said Congressman Gosar. “Though the Federal Reserve is only a quasi-government entity, quasi-transparency is unacceptable to the American people.  The continued secrecy surrounding the actions of the Federal Reserve is exactly the type of ‘business as usual’ my freshman class was sent to Washington to end, which is what makes today’s vote so important.”

The Federal Reserve Transparency Act would provide the congressional oversight, through the Government Accountability Office, to audit the monetary actions of the quasi-private Federal Reserve.  Current law prohibits full congressional access and review of the Federal Reserve’s lending practices.

Current restrictions on GAO audits include the examination of any transactions made under the Federal Reserve’s open market operations and Federal Open Market Committee directives, any deliberations and discussions on monetary policy, or any agreements made with foreign governments and central banks. Since the 2008 financial crisis, the Federal Reserve’s balance sheet has tripled to $3 trillion dollars. The Federal Reserve Transparency ActH.R. 459 will remove restrictions and require a one-time audit within 12 months of enactment.

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