H.R.24 - Federal Reserve Transparency Act of 2025 (119th Congress)
Summary
The Federal Reserve Transparency Act of 2025 (H.R. 24) aims to increase the accountability of the Federal Reserve System by mandating a full audit by the Comptroller General of the United States. The bill requires the Comptroller General to complete the audit within 12 months of enactment and submit a report to Congress within 90 days of completion. This report must detail the findings and conclusions of the audit and include recommendations for legislative or administrative action.
Expected Effects
If enacted, H.R. 24 would remove certain limitations on the Comptroller General's ability to audit the Federal Reserve. This could lead to greater public scrutiny of the Fed's operations and decision-making processes. The intended effect is to promote transparency and potentially influence future monetary policy decisions.
Potential Benefits
- Increased transparency of the Federal Reserve System.
- Greater accountability of the Board of Governors and Federal Reserve banks.
- Potential for improved monetary policy through increased scrutiny.
- Enhanced public understanding of the Federal Reserve's operations.
- Identification of inefficiencies or areas for improvement within the Federal Reserve System.
Most Benefited Areas:
Potential Disadvantages
- Potential for political interference in the Federal Reserve's operations.
- Risk of undermining the Fed's independence.
- Possible delays or disruptions in monetary policy decision-making due to increased oversight.
- The cost of conducting the audit may be significant.
- The audit may reveal sensitive information that could negatively impact financial markets.
Constitutional Alignment
The bill's constitutional alignment is primarily related to Congress's power to oversee government operations and ensure accountability. Article I, Section 8 grants Congress the power to coin money and regulate its value, implying oversight authority over the institutions managing monetary policy. The required audits and reports align with the principle of transparency and accountability, which are generally considered consistent with constitutional principles of governance.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).