Fed's Plosser: 'Audit The Fed' Is a Threat To Independence

Charles Plosser, the out-going president of the Philadelphia Fed, said Tuesday that he does not support legislation known as 'Audit the Fed' because it would make the U.S. central bank more susceptible to political influence. "I do not believe the Fed is perfect or that it is infallible," Plosser said. But the "Audit the Fed" bill goes too far, he said, by threatening political action in real time if any member of Congress opposes a decision to change interest rates. Plosser, who is retiring on March 1, has often been at odds with his colleagues. For instance, he has supported Republican efforts to scrap the Fed's dual mandate and instead focus only on inflation. This would remove the Fed current focus on full employment.