Bid to clip Fed's wings gains support in Congress

A proposal from a long-time congressional foe of the Federal Reserve that could give lawmakers sway over monetary policy has won the support of a majority in the House of Representatives, alarming officials at the U.S. central bank.

The Federal Reserve Transparency Act of 2009, put forward by Republican Representative Ron Paul of Texas, now has 250 co-sponsors in the House. It will get air-time on Thursday during a congressional hearing on Fed independence that will feature testimony from the Fed's No. 2 official, Donald Kohn.

Public anger over the trillion dollars the Fed has put into play to battle the financial crisis and bail out investment bank Bear Stearns and insurer American International Group has created a backlash and calls for more accountability.

A proposal from President Barack Obama to put the Fed in charge of monitoring risks to the entire financial system has intensified the scrutiny.

www.reuters.com...

If this ever gets enough support to pass, will it already be too late?

Ron Paul roxx the kazbah!

Something tells me the audit will either find that the cyberterrorists (whoever the poor guys they blame) took the trillions, or that they were being used to keep business going. No hanky panky will be found.

Like TPTB are gonna shoot themselves in the foot.