U.S. President Donald Trump famously said he would drain the swamp while he was running for high office. One of the ways that he claimed he would accomplish this was by auditing the Federal Reserve, the nation’s private central bank that has operated in a shroud of secrecy since its inception.
“It is so important to audit The Federal Reserve, and yet Ted Cruz missed the vote on the bill that would allow this to be done,” Trump wrote in a Tweet from Feb. 2016.
Trump will now have a chance to back up his campaign rhetoric, as an “Audit the Fed” bill will soon be introduced in the Senate.
“While we have made great strides in reviving our economy through curbing overzealous regulation and cutting taxes, lasting prosperity will escape us if we do not hold the enabler of big government and our astronomical national debt accountable. It’s time for the Senate to side with the American people by removing the shackles on congressional oversight and lifting the Fed’s veil of secrecy. It’s time for us to pass Audit the Fed,” Sen. Rand Paul (R-KY) said in a press release about his upcoming legislation.
Paul’s bill will require the independent Government Accountability Office (GAO) to look over the central bank’s international dealings, all decisions related to monetary policy made by Fed personnel, transactions related to the Federal Open Market Committee, and any communications related to the previous matters. A report would be submitted to Congress annually detailing the findings of the audit.
“We have given enormous power to a relatively small number at the Federal Reserve to directly impact and shape the costs millions of Americans will pay now and for years to come, and we have tied the hands of Congress’ investigative arm to hold them fully accountable,” Sen. Paul said in a Daily Caller op/ed from 2017.
Last year, the legislation did not receive the votes needed to achieve cloture in the Senate, and it died. A serious lobbying effort from the President could give the legislation the push it needs to succeed. However, Trump has staffed his cabinet with Goldman Sachs faithful such as Treasury Secretary Steven Mnunchin and chief economic advisor Gary Cohn. He will likely have to buck the influence of these well-connected banksters if he wants to do fulfill his campaign promise of providing transparency and accountability to America’s most powerful financial institution.