Washington Post editorial on Federal Reserve Transparency Act: Transparency at the central bank is a bad thing

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Which brings us to the proposed Federal Reserve Transparency Act, sponsored by anti-Fed crusader Ron Paul (R-Tex.) in the House and socialist Bernard Sanders (I-Vt.) in the Senate. In the name of open government, it would subject the Fed’s decisions to a full-blown audit by the Government Accountability Office, the investigative arm of Congress. Though the bill has attracted 276 co-sponsors in the House and 17 in the Senate, it is wrongheaded in the extreme. By opening up the Fed’s most sensitive interest rate and credit policies to public second-guessing, the bill would create a risk — real and perceived — of monetary policy bent to suit congressional overseers. This would destroy financial markets’ faith in the Fed and, by extension, the value of the U.S. dollar, just as surely as a political “audit” of the Supreme Court’s deliberations would undercut public faith in the justice system.

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