Federal Reserve Transparency

Annual Audit of the Federal Reserve

The Federal Reserve is a private organization with a Federal charter. It enjoys the monopoly privilege of being the only organization legally permitted to issue United States currency in the form of Federal Reserve Notes. Accountability is necessary for the proper function of any organization. Publicly traded companies must submit to independent audits if they are to be traded on stock exchanges. Private enterprises are accountable to their owners and customers. Elected officials are accountable to voters. The current oversight of the Federal Reserve by Congress is not sufficient. Testimony by the Federal Reserve Chairman biannually does not provide Congress or the people adequate information about the on-going operations of the Federal Reserve. It is commendable that the Federal Reserve publishes large amounts of information on their websites, but this does not make up for the lack of an independent audit.

The Republican Party supports an annual, independent audit of all aspects of the Federal Reserve, the results of which must be published for all Americans. The financial statements of the Federal Reserve must be audited to ensure completeness and accuracy. The American people deserve to know if the Federal Reserve is bailing out domestic or foreign banks. All operations of the central bank must be audited independently and the results made public, and this must happen every year. The concept of a central bank independent from political authority does not include total independence from scrutiny by the people of the United States.

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