FED Vice Chairman: Scared of GAO Audit

From the Wall Street Journal: Federal Reserve Vice Chairman Donald Kohn pushed back against a potential audit of the FED:

Testifying before a House Financial Services subcommittee, Fed Vice Chairman Donald Kohn pushed back against congressional efforts to rein in the Fed and widen politicians’ authority to audit the central bank.

There are three important things to learn from this article:

  1. The Fed is genuinely scared of an audit. This means that we’re definitely getting somewhere.
  2. The article mentions that “More than half the House has signed onto legislation” that involves a GAO audit of the Fed. It does not mention Ron Paul anywhere — this is good. It means that interest in the Federal Reserve is no longer seen as only a “Ron Paul thing.”
  3. The Vice Chairman warned that the audit may increase Congess’s control over monetary decisions. He is correct. Even if we audit or even eliminate the Fed, control over the monetary supply will still be in the hands of government officials. Our fight does not end with the Fed, but it’s a great start.

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