Panel Votes to Broaden Oversight of the Fed

The United States is currently in a recession. The government has come up with many "remedies" to try to end this recession. One of these "remedies" includes bailing out large companies, such as GMC. However, this company has faced such a large financial deficit that one bail out has not cut it for them. This problem is one of the many problems of the Federal Reserve that has caused anger in the House . Yesterday a House panel voted that Congress oversee the central bank's actions.
The House Financial Services Committee has recently approved a measure proposed by Ron Paul of Texas which, allows Congress to audit essentialy everything the Federal Reserve does. However, this measure is feared by many in the Federal reserve because it will cause the Federal Reserve to be a lot more pressured by not only politicians, but the public. Also, the Federal Reserve believes that, "it would undermine the central bank’s political independence and gravely threaten its credibility as a bulwark against inflation."
This measure proposed entails that the Government Accountability Office perform all these audits on the most controversial things such as the bail outs. Also, the Goverment Accountability Office would oversee the interest rates set by the central bank. With this measure the goal of the central bank to decrease interest rates would be disturbed because now Congress would also have to agree on a way to accomplish the goal of decreasing interest rates.
This proposed measure seems extremelly efficient during these difficult times. The Federal Reserve has made many mistakes in bailing out these companies, in that, these companies still have not learned their lessons. Now with Congress being able to oversee the actions of the Federal Reserve, Congress can now disagree with the actions taken by the Federal Reserve. The Federal Reserve will potentially not make these mistakes anymore. Also, the public can also pressure the Federal Reserve to act in accordance with the publics opinion.

http://www.nytimes.com/2009/11/20/business/20regulate.html?scp=27&sq=the%20times%20in%20print%20for%20November%2020,%202009&st=cse