House Financial Services Chairman Rep. Barney Frank, Massachusetts Democrat, said he expects former GOP presidential candidate Ron Paul’s legislation to audit the Fed to pass out of his committee in October as part of a larger regulatory package.
Today, the Government Accountability Office has no power to audit the Federal Reserve. Mr. Paul’s bill would empower the government watchdog to do so and make their findings available to the public.
Mr. Frank said, ”One of the things the audit will show you is what the Federal Reserve buys itself. And that will be made public, but not instantly because if it was made instantly people would be trading off it, so the data would be released after a time period of several months, enough time so it will not be market sensitive. This will probably pass in October.”