Just Audit the Darn Thing

The Federal Reserve headquarters in Washington, DC (photo credit: Dan Smith, CC BY-SA 2.5)
The Federal Reserve headquarters in Washington, DC (photo credit: Dan Smith, CC BY-SA 2.5)

It has $4 trillion in holdings…close to one quarter of the U.S. GDP.

The markets flip out anytime it even hints at making a move.

It enabled the housing bubble and, in large part, the Great Recession that followed its bust.

It has less oversight than a local pizza restaurant. (I’d know.)

It’s time to audit the Federal Reserve.

I don’t care what former real estate and development moguls like Tennessee Sen. Bob Corker say. We need transparency.

Opponents of auditing the Fed say that doing so will disrupt the economy and cause harm to the markets. What does that tell you about the state of operations at the Fed?

This makes the need for auditing the Fed all the more urgent. Can you imagine a taxpayer telling the IRS not to audit them because it would cause them harm? Further, can you imagine the IRS forgoing an audit of that person? I don’t think so.

If you’re running for President and don’t support oversight of arguably the most powerful financial institution in the world, then you don’t have the judgment or fortitude that it takes to lead the free world.

And if you just can’t find the courage to support auditing the Fed, the bare minimum should be to support holding a commission to analyze Fed policy over the past 100 years and give a recommendation for monetary policy going forward.

Terry Schilling is the executive director of American Principles in Action.