Sen. Rand Paul (R-KY) and thirty cosponsors have reintroduced legislation to demand a full audit of the Federal Reserve System by the General Accountability Office (GAO). This would bring a wide range of FRB activities under Congressional scrutiny, which opponents fear would dramatically reduce the central bank’s independence and, thus, threaten the integrity of monetary-policy deliberations. Advocates counter that the FRB is unduly independent of the legislative branch and wields disproportionate economic influence as a result. The legislation would also require GAO review of controversial mortgage-foreclosure enforcement actions.
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