Yellen: No audit of the Federal Reserve

Wilson Fed cc

This isn’t a surprise. There is no way she would have been considered for the top job at the Fed had she been for an audit.

But we must keep the pressure on and we are thankful that Senator Vitter raised the issue.

(From The New York Sun)

“For 50 years,” Mrs. Yellen averred, “Congress has recognized that there should be an exception to GAO ability to audit the Fed to avoid any political interference in monetary policy.” She said she believes that “allowing a central bank to be independent in formulating monetary policy is critical to assuring markets and the public that we will achieve price stability, and I would be very concerned about legislation that would subject the Fed to short-term political pressures that could interfere with that independence.”

Mrs. Yellen may be no different than Mr. Bernanke, nor than most, if not all, of the chairmen who have come before him. All the more maddening is the fact that the committee proceeded to drop the matter. Mr. Vitter surely gets the issue, or he wouldn’t have raised it and co-sponsored Senate 209. But his colleagues made no follow-up about the Constitution of the United States. Not one senator who serves on the Banking Committee stood up for the prerogatives of the Congress. What is the Congress, chopped liver?

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