U.S. Senator Susan Collins has cosponsored legislation to audit the Federal Reserve. S. 202, The Federal Reserve Transparency Act of 2011, was introduced by Senator Rand Paul.
“I agree that stronger oversight and greater transparency of the Federal Reserve are crucial, given the fact that decisions made by the Fed have such a tremendous effect on our economy,” said Senator Collins. “In fact, in the last Congress I introduced the Federal Reserve Credit Facility Review Act, which would have given the Government Accountability Office the authority to audit a wide range of credit activities undertaken by the Federal Reserve. I have also supported numerous amendments that would have provided for audits of the Federal Reserve System.”
S. 202 would eliminate restrictions on GAO audits, thereby subjecting the Federal Reserve’s credit facilities, securities purchases, and quantitative easing activities to Congressional oversight. The bill directs the Comptroller General to complete an audit of the Board of Governors of the Federal Reserve System and of the Federal Reserve banks, and follow up with a detailed report to Congress.