New York Sun: Janet Yellen's audit

From the New York Sun
Tuesday, February 24, 2015

It strikes us that it was passing strange for Chairman Janet Yellen to wave a copy of the central bank's audited financial statement as a prop in answering Congress on Senator Rand Paul's "Federal Reserve Transparency Act." She did this today at the hearing of the Senate Banking Committee. Her suggestion that a standard financial audit is what the Transparency Act is all about was almost contemptuous. So was her suggestion that the bill that has already twice passed the House -- September's bipartisan vote was 333 to 92 -- is somehow designed to politicize monetary policy.

Just to underline the point, what Mrs. Yellen held up was an audited report of the kind that is done by accountants using green eyeshades. What the Congress wants is a look not only at the books but also at the Fed's holdings and minutes and transactions overseas. It is not an attempt to interfere with Fed policy. It is an attempt to find out what the Federal Reserve is doing. It's just shocking that the Federal Reserve would want to deny to its creator this kind of inspection once every, oh, say, century.

Particularly on this morning, when the world is digesting the Wall Street Journal's astonishing scoop about how the Justice Department is investigating trading by "at least 10 major banks" for rigging the market in gold and other precious metals. ...

... For the complete commentary:

http://www.nysun.com/editorials/janet-yellens-audit/89061/