Federal Reserve Transparency Act of 2013 (H.R. 24)

What is H.R. 24?

(Updated October 23, 2016)

H.R. 24, otherwise known as the Federal Reserve Transparency Act of 2013, is an effort to avoid another financial meltdown (remember 2007-2008?) by auditing the Federal Reserve system (FED). The bill:

• Taps the Government Accountability Office (GAO) to perform the audit on the FED and its banks
• Repeals certain provisions that currently outlaw the GAO from auditing the FED's monetary policies
• Allows the GAO to audit the FED’s transactions with foreign central banks, foreign governments and other organizations.

Argument in favor

Auditing the Federal Reserve encourages transparency, accountability, and ensures that they are contributing to national economic stability.

Argument opposed

Extra oversight won’t prevent economic turmoil. The future of the economy is not in the hands of the FED. It depends on the private sector.

Impact

The Federal Reserve, the U.S. economy, and the Government Accountability Office.

Cost of H.R. 24

A CBO cost estimate found that implementing H.R. 24 would increase discretionary spending by $5 million over the 2015-2019

Additional Info

In Depth:

The last time the FED was audited was when the Dodd-Frank Wall Street Reform and Consumer Protection Act passed in 2010.

With this audit, H.R. 24 aims to ascertain whether or not the U.S. central bank is engaging in safe practices that support a stable economy.

Media:

Sponsoring Rep. Paul Broun (R-GA) Press Release

CBO Cost Analysis

"Audit The Fed" Facebook

(Photo Credit: Wikipedia Contributor TonyTheTiger)