Auditing Policy Decisions Could Hinder Fed: Bullard

Auditing monetary policy decisions, as currently proposed, “could diminish the independence of the Fed,” Federal Reserve Bank of St. Louis president James Bullard said yesterday.

Currently, the Fed is “extensively audited,” he said.

The proposals to audit policy decisions would erode the Fed’s independence, and “could result in a 1970s-style period of volatility,” Bullard said. “The consequences for the U.S. and the global economy would be large. No one would be served well by this outcome.”

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