re: #171 Killgore Trout

Because it’s a very bad idea to bog down the Fed with bureaucratic red tape from congress. They often have to act quickly to avert crises and there’s not time to hold meetings, debates and votes in congress before they take action. Also, giving control of our monetary policy to Congress is just about the worst idea possible.

Ben Bernanke: Federal Reserve audit would constitute “takeover” by Congress

Also the Fed does operate with a certain amount of secrecy to avoid panic in the markets and insider trading. Giving congress access to this information is a recipe for disaster.
Either way, even if the legislation passes it will surely be vetoed. Even Obama is not stupid enough to let this go through.

Why would a CAO audit bog down the activity of the Federal Reserve?

Doesn’t the Constitution allow this type of audit on the Federal Reserve?

Does the Federal Reserve reserve the right to conduct themselves outside of congressional oversight? If so is this right codified under US law? Does it go against the Powers of Congress?