‘Finally, we’re gonna audit the Fed:’ House passes bill to audit Federal Reserve

The chamber voted 333-92 to approve The Federal Reserve Transparency Act, which would require a full audit of the banks and Board of Governors of the Federal Reserve System by an independent government watchdog.

“While in recent years, the Fed has been granted a greater role in overseeing the regulation of our financial system, current law specifically prohibits audits of the Federal Reserve’s deliberations, decisions, or actions on monetary policy,” Rep. Paul Broun (R-Ga.), the bill’s chief sponsor, said in a statement. “This lack of accountability and transparency has led to grievous consequences — and it must end.”

Wednesday marks the second time that the legislation has made it past the House. The measure was passed in 2012, when Paul, the former presidential candidate, was its main champion.

“I am pleased to see the House of Representatives once again pass this historic legislation,” Paul said in a statement. “The support ‘Audit the Fed’ has received over the past few years has been tremendous.”

The bill’s prospects in the Senate are doubtful. Paul’s legislation was never allowed to the floor for a vote, and the man responsible for that decision still controls the chamber: Senate Majority Leader Harry Reid.

Reid once supported the idea of a Fed audit before reversing himself. He bragged about his position in a 1995 speech, saying, “I think we should audit the Federal Reserve. It’s taxpayers’ money that’s being used there, but we don’t do that.”

Broun dinged Reid for the flip flop.

“I strongly encourage Senate Majority Leader Harry Reid to recall his past support for this legislation — which he stated as recently as 2010 — and to bring this bill before the Senate for a vote, so we may deliver the transparency and government accountability the American people need and deserve,” he said.

The measure received a notable amount of bipartisan support: 106 House Democrats voted in favor of it. Only one Republican voted against it.