Merkley, Corker Introduce Legislation to Audit the Fed, Protect Taxpayer Dollars
WASHINGTON, D.C. – In the wake of the Federal Reserve’s extraordinary actions last year to stabilize the financial system, U.S. Senators Jeff Merkley (D-OR) and Bob Corker (R-TN), members of the Senate Banking Committee, today introduced legislation that will require the Government Accountability Office (GAO) to conduct an audit of the Fed’s emergency lending programs. The Federal Reserve Accountability Act will monitor and protect taxpayer dollars without intruding upon the Federal Reserve’s independent monetary policy or its role as lender of last resort.
“Transparency and accountability are fundamental principles of representative government,”Merkley said. “During this financial crisis, Federal Reserve credit contributed greatly to the stabilization of the system. In doing so, the Federal Reserve departed significantly from its traditional relationship with markets and took on unprecedented new risks.