According to a Monday release, Rep. Ron Paul's (R-Texas)Audit the Fed bill is expected to receive a House floor votelater this month.

HR 459 passed the House Committee on Government Oversight andReform unanimously on June 27, with all major audit provisionsintact.

The bi-partisan bill to more thoroughly audit the FederalReserve Board's activities has 263 co-sponsors, including creditunion-friendly representatives Brad Sherman (D-Calif.), Shelley Capito (R-W.Va.), Marcy Kaptur (D-Ohio) and Blaine Luetkemeyer (R-Mo.).

The Federal Reserve's financial statements are audited annually,but according to the release, the Fed's monetary policy operationsare exempt from audit by Congress. The Government AccountabilityOffice is prohibited by law from examining discount window and openmarket operations, agreements with foreign governments and centralbanks and Federal Open Market Committee directives.

An audit currently mandated by the Dodd-Frank Act focuses onemergency credit programs. Dodd-Frank requires information such asopen market operations and discount window lending to be disclosedwithin two years, and with GAO restricted to auditing only theprocedural components of any programs. HR 459 grants GAO andCongress access without special exemptions to all Fed lendingactivities.

HR 459 also requires transparency of the Fed's agreements withthe European Central Bank and other foreign entities.