Audit The Federal Reserve?

An independent institute for monetary statistics is needed in the United States, says William Barnett. Expanded Congressional audit would be a second best alternative, but would not fully address the needs and would carry risks. Federal Reserve Chairman Ben Bernanke has spoken out against Congressional bills to audit the Federal Reserve. Why? Proponents argue that the purpose of the audits is to increase the transparency of Federal Reserve policy and improve the quality of data from the Federal Reserve. Aren't these both in the public interest? There is growing evidence that defective Federal Reserve data played a role in producing the misperceptions of systemic risk that led up to the current recession.