Public Intelligence

The Senate approved an amendment to the Wall Street reform bill Tuesday that would order a one-time audit of the Federal Reserve if the underlying legislation passes. The amendment, which passed 96-0 with overwhelming bipartisan support, was the product of a deal brokered late last week by sponsor Sen. Bernie Sanders (D-Vt.) and Banking Committee Chairman Chris Dodd (D-Conn.) to make the provision acceptable to White House and Treasury officials, and appealing to Senate moderates. Sanders’s modified language sets a firm time window for the review of the Fed—from Dec. 1, 2007 to the day the legislation is signed into law—and restricts the Government Accountability Office from looking into the Fed’s decision-making on interest rates.

Former Federal Reserve Chairman Alan Greenspan said he’s worried that lawmakers will hamper U.S. central bank efforts to rein in its monetary stimulus, and that inflation might “swamp” the bond market.