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Klein: Audit the Fed Proposal Was Misguided

Tuesday, January 12, 2016

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Washington, D.C.-  Debating the Federal Reserve’s role and responsibilities is valuable, but any measure before Congress should ensure that the central bank’s independence in conducting monetary policy is preserved, Aaron Klein, director of the Bipartisan Policy Center’s Financial Regulatory Reform Initiative, said.

“The ‘Audit the Fed’ proposal that was essentially defeated by the Senate was mistaken and misguided. There are good reasons to examine reforming the Federal Reserve’s role, responsibilities, and structure. However, any proposal must not hinder the independence of the Federal Reserve to conduct monetary policy,” Klein said.

“The ‘Audit the Fed’ proposal did not meet this bar. Hopefully now a bipartisan conversation can emerge that examines common sense reforms to the Federal Reserve System,” he said.

Aaron Klein is available for comment.