Elon Musk Proposes Auditing Federal Reserve, Raises Scrutiny Concerns
Elon Musk has reignited calls for increased oversight of the Federal Reserve, suggesting an audit of the central bank at a recent conservative gathering. This follows similar comments made on social media earlier this month.
Musk's proposal stems from his belief that all government agencies, including the Fed, should be transparent and accountable to the public. Currently, the Fed's financial statements are audited annually, and the Government Accountability Office (GAO) and the Fed's Office of Inspector General also conduct audits.
However, some conservatives, such as former Congressman Ron Paul, advocate for a GAO audit that would include the Fed's private deliberations on interest rate policy. Musk has expressed support for Paul's involvement in such an audit.
Fed Chair Jerome Powell has voiced concerns about potential political interference in monetary policy if the central bank's independence is compromised. He emphasized that the GAO has broad authority to audit the Fed, except for monetary policy decisions, and limiting that exemption could undermine the Fed's ability to respond to crises.
Powell has previously argued that the Fed is transparent, accountable, and subject to rigorous oversight. He maintains that the proposed audit proposal underestimates the risks and costs of exposing monetary policy to political pressure.