US Treasury Secretary Nominee Not a Fan of Auditing the Fed

As a candidate, President Trump strongly supported auditing the Federal Reserve — a move that many fear could subject the world’s most powerful central bank to political interference.

But Steven Mnuchin, U.S. Treasury secretary nominee, doesn’t sound like he believes auditing the Fed is necessary.

Senator Bill Nelson sent Mnuchin a written question asking the Trump nominee what he thinks about “politicizing decisions” made by the Fed and the “benefits of an independent central bank.”

Mnuchin responded cautiously, but made no mention of the dire need to audit the Fed that Senators Ted Cruz and Rand Paul — and Trump — have voiced.

“As you know, the Federal Reserve is organized with sufficient independence to conduct monetary policy,” Mnuchin wrote.

Trump’s Treasury pick added, “I endorse the increased transparency we have seen from the Federal Reserve Board over recent years.”

An audit would allow the General Accountability Office to review the Fed’s decisions on raising and lowering interest rates — a critical tool the Fed uses to encourage growth or keep the economy from overheating.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza