Naomi Wolf, blogger and author of such New York Times bestsellers as The Beauty Myth, The End of America and Give Me Liberty, has added her name to the list of over 5,000 people endorsing Alan Grayson’s campaign to audit the Federal Reserve.
Also endorsing Grayson’s efforts is OMB Watch, the nonprofit research and advocacy organization which seeks to increase transparency and accountability surrounding the Federal budget.
Dean Baker writes at the Guardian in support of the bill and the need for transparency at the Fed:
[I]t is not possible to find out in detail how much money Goldman Sachs borrowed, for example, at what interest rate, and which assets it posted as collateral. The Fed has explicitly refused to make information about specific borrowers public. In fact, the inspector general who has the responsibility for overseeing the Fed told congress that she does not have this information. Apparently the Fed doesn’t even trust its inspector general with information on its lending practices.
It is difficult to understand the rationale for this secrecy. There may be times where it is necessary for America’s central bank to lend money to a bank without immediately making the information public in order to avoid a panic. However, it is difficult to understand why this information cannot be made available weeks or even months later. After all, this money does not belong to the Fed – it belongs to us.
The proposal for a GAO audit of the Fed is a first step towards reasserting democratic control over this institution. In many respects, the Fed has more direct control over the direction of the economy than the president or congress, yet it carries through its actions largely outside of the public’s view.
The Federal Reserve Transparency Act currently has 181 cosponsors. You can add your name in support here. Your name will be circulated to members of Congress in order to solicit more cosponsors for the bill.