According to Reuters, Rep. Barney Frank said he plans legislation to restrict the Federal Reserve’s emergency lending powers and subject the central bank to a “complete audit” in October 2009.

Frank said he has been working with Paul on compromise language. “He agrees that we don’t want to have the audit appear as if it is influencing monetary policy because that would be inflationary” . A video of his remarks was posted on YouTube here .

Frank said the audit and emergency lending provisions would be incorporated in broader legislation to revamp U.S. financial regulation that would likely pass the House in October. By seeking a compromise with Paul, Frank thinks he can strengthen the broader legislation’s chance at passage.

We’ll see if this actually gets done. Hopefully these “compromises” will not strip the bill of its teeth. We MUST have a REAL Fed Audit, not some pie-in-the-sky publicity stunt to make the ignorant think something is being done.

According to Rassmussen Reports, 75% of Americans support auditing the Federal Reserve. In contrast, only 9% of adults surveyed were against the idea of a FED audit. In the face of all this support, Fed Chairman Ben Bernanke is continuing to push back against the Federal Reserve Transparency Act, that would give the Comptroller General – the head of the Government Accountability Office – the power to audit the central bank.

Economist Dean Baker, who’s been a vocal critic of the Fed, recently commented:

“The country now has almost 25 million people who are unemployed or underemployed as a result of the Fed’s disastrous policies. Millions of people are losing their homes and tens of millions are losing their life savings. The country is likely to lose more than $6 trillion in output ($20,000 per person) due to the Fed’s inept job performance.”

The Federal Reserve Transparency Act MUST pass in order for our economy to recover for the long term. Contact your representative TODAY to show your support for the bill!

Senator Jim DeMint (R-SC) was on Fox News yesterday urging Democrat leaders in Congress to stop blocking a vote on legislation to audit the Federal Reserve, authored by Rep. Ron Paul (R-Texas) in the House, H.R. 1207, and Sen. Bernie Sanders (I-Vt.) in the Senate, S. 604.

From the Washington Times:

The Federal Reserve, already arguably the most powerful agency in the U.S. government, will get sweeping new authority to regulate any company whose failure could endanger the U.S. economy and markets under the Obama administration’s regulatory overhaul plan.

The decision to concentrate sweeping new powers at the already overstretched Fed is not without controversy. Sen. Christopher J. Dodd, chairman of the Committee on Banking, Housing and Urban Affairs, which must approve any regulatory overhaul, has raised objections to that approach, and so has Federal Deposit Insurance Corp. Chairman Sheila C. Bair.

There really is no argument that the FED has too much power. The fact that the Obama Administration wants to give it authority over non-financial firms is truly incredible.   The Nation has a piece arguing that Sheila Bair is one of the few people standing against unlimited power of the Obamunists via the FED:

You probably don’t know much about Sheila Bair, but she is looking out for you, and that is why the big guys on Wall Street and their allies in the Obama administration are out to get her.

Once an aide to then-Sen. Robert Dole (R-Kan.), Bair was appointed by the first President Bush to the Commodity Futures Trading Commission and reappointed by President Clinton. Later she was named head of the FDIC by President George W. Bush. Throughout her public service she has proved to be a vigilant protector of consumer interests.

The current point of conflict between Bair and the hacks who got us into this mess–and who have resurfaced as the key players running the bailout–is financial industry accountability. She started demanding that accountability last fall when the Bush administration began the TARP bailout and she continues to do so under Obama. Throughout, her nemesis has been Timothy Geithner, former head of the New York Federal Reserve Bank and now secretary of the treasury.

So NO to more FED power! Support Bair in her efforts to oppose this power grab.  Support the Federal Reserve Transparency Act to shed light on the FED and limit its power.  You can tell which members of congress are in the pocket of the banks by looking at who supports the Federal Reserve Transparency Act and who does not.  However, the Senate is really where the influence of the FED will be ultimately be shown…