The Federal Reserve was established by Woodrow Wilson and the 63rd US Congress. It came from the
Federal Reserve Act
According to Title 12 > Chapter 3 > Subchapter II > S 248b
The Board shall order an annual independent audit of the financial statements of each Federal reserve bank and the Board.
From 1913 through 1921 it was audited annually by the U.S. Treasury Department (It is also the tenure of president Woodrow Wilson). But in 1921 the
67th US Congress passed the Budget and Accounting Act of
which allowed the president to appoint a Director of the Budget who was to check all expenditures of the Executive Department. This
included the Federal Reserve. It was later renamed the Government Accountability
which was in charge of independent audits of the Federal Reserve System.
This came to an end in 1933 with the Banking Act of 1933
when Congress removed the Federal
Reserve Board of Governors from the Government Accountability Office jurisdiction. From 1933 to 1952 audit teams from the twelve Federal Reserve Banks
performed the annual examination of the Board of Governors books.
Beginning in 1952 and lasting until 1978, the BOG(Board of Governors), under authorization from Congress decided to employ national recognized
accounting firms to conduct audits of itself
. The question here is, who pays for these audits? This barred GAO from auditing the Federal
Reserve and only allowed independent
private firms to audit the Fed.
In 1978 the Congress passed the Federal Banking Agency Act 31 US Code
. This act did many things, but most importantly it placed the Federal Reserve back under auditing authority of the GAO. GAO does not have
rights to all aspects of the Federal Reserve System.
(1) transactions for or with a foreign central bank, government of a foreign country, or no private international financing organization;
(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities
credit, interest on deposits, and open market operations;
(3) transactions made under the direction of the Federal Open Market Committee; or
(4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve
System related to clauses (1)–(3) of this subsection.
So let's review. From 1913-1921 there was very little auditing of the Federal Reserve, then from 1921-1933 it was audited, then from 1933-1978 it was
not audited by and GAO which is meant for ACCOUNTING
, it was finally audited again after 1978 and placed back under the administration
of GAO, but with exceptions
Just take a look at history and all of the important economic legislation and wars that were passed from 1933 to 1978. It spans from the 73rd to 95th