U.S. Rep Frank says Fed audit may send wrong signal

WASHINGTON Sat Dec 12, 2009 2:31am IST

Related Topics

WASHINGTON Dec 11 (Reuters) - The chairman of the powerful House Financial Services Committee said on Friday that proposals in a U.S. House of Representatives-passed bill to subject the U.S. central bank's policy decisions to more congressional scrutiny goes too far.

"I do think the Fed could be audited. I think it's totally important to us to know what they're buying and selling," Barney Frank, the chairman of the House Financial Services Committee, said on CNBC television.

But he said a House financial regulatory overhaul bill that passed on a 223-202 vote overreached.

"I think the amendment that was adopted went too far," Frank said. "I think it could give the perception that monetary policy is not going to be independent and that would have an inflationary effect in and of itself." (Reporting by Glenn Somerville; Editing by Dan Grebler)

FILED UNDER:

Reuters Showcase

Uber's Woes

Uber's Woes

Uber, other taxi-hailing apps hit new roadblock in Delhi.  Full Article 

Transfer Pricing

Transfer Pricing

India's Vodafone decision eases tax worries for Shell, others.  Full Article 

Facebook Earnings

Facebook Earnings

Facebook tops Wall Street revenue target in 4th quarter.  Full Article 

Governance Reforms

Governance Reforms

IMF sets June deadline for progress on governance reforms.  Full Article 

Fed's Stance

Fed's Stance

Fed upbeat on U.S. economy, cites strong job gains.  Full Article 

Tumultuous Run

Tumultuous Run

McDonald's CEO Don Thompson leaving.  Full Article 

Samsung Results

Samsung Results

Samsung Elec's smartphone primacy under threat from Apple after weak Q4.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage