A congressional audit of the Federal Reserve’s 12 regional banks is not expected to receive much attention as a Republican-controlled House is more focused on reigning in the Fed rather than its regional banks.
The study of the Fed’s network was required by the Dodd-Frank Act in order to root out any perceived cronyism, WNEP.com reports. Republicans, however, are less interested in undermining the regional banks then Democrats were last year.
Democrats have long sought to clip the wings of the regional central bank officials and Dodd-Frank’s cosponsor, Rep. Barney Frank (D-Mass.), has proposed requiring regional Fed bank chiefs to be appointed by the president as well as receive Senate confirmation.
Currently, Fed board members are presidential appointees, but the heads of the regional Fed banks are selected by local boards with substantial representation from commercial bankers, according to WNEP.com.
Republicans announced earlier in the year that they want to narrow the Fed’s responsibilities to battling inflation, although that effort garnered little attention.
“I don’t think there’s much momentum behind that,” Sen. Bob Corker (R-Tenn.) said, WNEP.com reports.
The audit is expected to be so narrowly confined to governance issues that will not likely result in any significant changes, according to a Hill source, according to WNEP.com.