Jason Chaffetz Shocks Democrats: ‘We Are Going To Audit The Fed’

President Trump demanded more transparency and oversight from Congress. Chaffetz and Gowdy are delivering.

Jason Chaffetz has done “the impossible” and pushed a bill through Congress ordering an audit of the Federal Reserve.

The bill will allow for a Congressional audit of the Federal Reserve’s secretive monetary policy, and was opposed by Fed policymakers and Democrats. However it does have President Donald Trump’s approval.

Under the bill, the Fed’s monetary policy deliberations could be subject to outside review by the Government Accountability Office – an unthinkable situation for the Fed’s policymakers, who are used to operating with total impunity, a law unto themselves.

Congress was ordered by President Trump to show more transparency and oversight and the Committee on Oversight and Government Reform is doing just that. Trey Gowdy is handling the intelligence oversight while Jason Chaffetz is handling the transparency oversight.

Both are infamous for the dealings they had with Hillary Clinton and her private email scandal. Unlike the vast majority of our Representatives, when these two guard dogs bite they don’t let go.

I applaud this bill, I have been a supporter of this bill for several years now,” Jason Chaffetz said, before stating that it is “irresponsible” not to audit the Federal Reserve.

Zero Hedge report: While similar bills have garnered some support from Democrats in the past, they uniformly spoke against the current proposal during a meeting of the House of Representatives suggesting the current iteration would face stronger resistance from an increasingly polarized environment in Washington D.C..

The House previously passed similar versions of this legislation twice before in 2012 and 2014, with dozens of Democrats joining nearly unanimous Republican support.  That said, those bills both died in the Senate and likely would have faced a Presidential veto from Obama had they survived anyway.

That said, Trump expressed interest in passing such legislation multiple times during the 2016 campaign cycle which means the 3rd time might just be the charm for Republicans.

And while proponents of the bill argue that the Fed wields too much power over the U.S. economy with minimal oversight, opponents assert that Fed decisions should be informed purely by economic indicators and completely insulated from “political pressure”…and we presume those same opponents would argue that Yellen’s decision to wait until just after the conclusion of the 2016 Presidential election to start hiking rates had absolutely nothing to do with politics.

Per Reuters:

Proponents of the measure argue that the Fed is too powerful and lacks sufficient oversight for its interest rate decisions. But Fed officials from Yellen on down, as well as other critics, have warned that such a policy could subject the Fed to undue political pressure and discourage it from taking unpopular steps for the good of the overall economy.

We should not in any way hinder their independence,” said Representative Carolyn Maloney, a New York Democrat, echoing the sentiment of Fed policymakers who say they could come under political pressure to avoid making unpopular decisions such as raising interest rates to slow growth and control inflation.

The next step for the bill would be a floor vote by the entire House, where Republicans hold a solid majority, followed by a vote in the Senate, where Republicans hold a narrower majority.

Baxter Dmitry

Baxter Dmitry

Baxter Dmitry is a writer at News Punch. He covers politics, business and entertainment. Speaking truth to power since he learned to talk, Baxter has travelled in over 80 countries and won arguments in every single one. Live without fear.
Email: baxter@newspunch.com
Follow: @baxter_dmitry
Baxter Dmitry
  • Black Swan

    ” The Money Powers prey upon the Nation in times of Peace and conspire against it in times of adversity. The Banking Powers are more despotic than a Monarchy, more insolent than autocracy, more selfish than Bureaucracy. They denounce as public enemies all who question their methods or throw light upon their crimes.” Abraham Lincoln 1862

    • Richard Canary

      Well said, Abe. And let’s keep in mind a crucial distinction between the votes of democrats now under Trump’s administration and earlier under Obama’s control. Under Obama, many of the dems in red states could vote for conservative options with the assurance that Obama would not sign it anyway, but those dems would get the trust of some conservative voters.

      Now that Trump is in office, they can be sure that he will sign conservative measures, so they must vote against them.
      Trump seems to be making even dems to be honest… but don’t worry, it’s only temporary.;)

      What do you think, Abe?

      • Black Swan

        Its the golden rule, he who has the gold makes the rules.

  • Constitution

    How did he “pass” the bill, if it hasn’t been voted on in the House, much less the Senate?