Audit the Fed? Not so fast: Not this again.
Calls to “Audit the Fed” are back. And just as before, they are extraordinarily dangerous to the health of the U.S. economy.
First, a little background. Conspiracy theories about the Federal Reserve’s wacky technical mumbo-jumbo voodoo have a long populist history. Monetary policy is complicated and abstract; entrusting it to a secretive, propeller-headed cabal naturally arouses suspicion. No surprise, then, that libertarian hero and former Texas congressman Ron Paul for years tried to persuade his colleagues to curb the central bank’s power and independence with recurrent calls to “Audit the Fed” (if not kill it entirely). He made Fed audits a centerpiece of his 2008 and 2012 presidential campaigns.
Now, with Republicans controlling both houses of Congress, he might finally get his way.
Sen. Rand Paul (R-Ky.) has picked up his father’s mantle and reintroduced the proposal as the Federal Reserve Transparency Act of 2015. Sen. Ted Cruz (R-Tex.) — like Paul a likely 2016 presidential contender — has also joined the cause, along with 29 other co-sponsors. A companion bill was introduced in the House by Rep. Thomas Massie (R-Ky.). ...