House Passes Fed Oversight Bill Opposed By Yellen, Obama

The House of Representatives on Thursday passed legislation to increase oversight over the Federal Reserve that is strongly opposed by the U.S. central bank and the White House. House Republicans say the measure would make the Fed more transparent but Fed Chairwoman Janet Yellen called the bill a "grave mistake," especially the provision that would require the U.S. central bank to follow a mathematical rule to set interest rates. The White House also condemned the measure, saying President Barack Obama's advisers would recommend that he veto the bill. The House vote was 241 to 185. In May, the Senate Banking Committee already passed Republican-backed legislation to increase oversight of the Fed, but that measure doesn't require the Fed to follow a mathematical rule. The Senate bill would require Senate confirmation of the New York Fed president.