"Audit the Fed"

[alfred russel]

Yeah, isn't the point of the "audit the Fed" thing to get the audit information out so it can be used for partisan political purposes (and thus compromise confidentiality)?

There are a number of institutions that can be used to confidentially audit an entity.

[Jacob]

Yeah, isn't the point of the "audit the Fed" thing to get the audit information out so it can be used for partisan political purposes (and thus compromise confidentiality)?

There are a number of institutions that can be used to confidentially audit an entity.

Yes, of course. As JR says, the Fed is audited.

I'm getting the impression that the "audit the fed" thing he's talking about is more about the how and to what end.

[The Minsky Moment]

Part of the reason I put "audit" in scare quotes is that what is being talked about in these bills is not an audit in the usual sense of the word; i.e. an audit of the accounts of the banks to verify that they fairly reflect their true condition.  That is already done by law and the Fed's accounts are very transparent.  Thus, open market operations and foreign central bank transactions are subject to audit -- despite the statutory exemption - in the sense that those transactions and operations impact on the accounts which are subject to audit.  Under Dodd-Frank, the GAO also has power of oversight even over the exempted operations for the purposes of verifying operational integrity, strength of internal controls, integrity of collateral policies, and fraud and abuse - although any confidential information it reviews must remain confidential in its report.

What the GAO can't do is carry out economic or policy evaluations of Fed policy, by examining internal policy deliberations.  That is what is being placed in the cross-hairs here.  The Fed of course is accountable for its economic and policy actions - formally via Humphrey-Hawkins and informally through Bernanke and Yellen's voluntary release of deliberative minutes and the mass of articles, press releases, and research publications from individual governors, their staffs, and the regional banks.  One may think Fed policy confused, or wrongheaded, but is not hidden.

[Razgovory]

Are they still worried about counting the gold bars at Fort Knox?

There aren't any gold bars at Fort Knox.
These days Fort Knox doesn't even have the armor brigade they used to.
Now, is only HRC, Human Resources Command.

Your information is inaccurate.

[alfred russel]

What the GAO can't do is carry out economic or policy evaluations of Fed policy, by examining internal policy deliberations.

I agree that shouldn't be audited.