Elon Musk Proposes Federal Reserve Audit, Citing Transparency Concerns
Billionaire Elon Musk has reiterated his call for a closer examination of the Federal Reserve, suggesting that he intends to pursue an audit of the central bank.
During a speech at the Conservative Political Action Conference, Musk responded affirmatively when asked about his plans for an audit. This marks the second time this month that Musk has endorsed such an inquiry.
Musk's comments align with a recent executive order issued by the White House, which aims to strengthen control over the Fed's oversight of large banks. However, the order clarifies that monetary policy will remain under the Fed's sole purview.
Musk's initial proposal for a Fed audit stemmed from social media posts in February, where he emphasized the need for transparency and accountability in government institutions, including the central bank.
While the Fed undergoes annual financial statement audits, some conservatives, such as former Congressman Ron Paul, have advocated for a more comprehensive audit that would encompass the Fed's interest rate policy deliberations.
Fed Chair Jerome Powell has expressed concerns about the potential for political interference with monetary policy under such an audit. He has maintained that the Fed operates transparently and has taken steps to enhance transparency since the financial crisis.
Despite Powell's concerns, Musk and other advocates for a Fed audit argue that the central bank's independence should be balanced by accountability to the public.