Following up on my earlier post, Kevin Connor points to one possible reason that Senator McCaskill is flip-flopping on her support of an audit for the Federal Reserve – one of her top donors is chairman of the St. Louis Federal Reserve.
For her own part, Sen. McCaskill has issued a statement:
Senator McCaskill shares her colleagues’ goal of holding Wall Street and the Federal Reserve accountable for their policy choices, but wants to be careful that we don’t allow politicians to politicize the way the Fed sets monetary policy. The amendment Senator McCaskill voted for in April 2009 included a provision to make public the names of institutions which had received special assistance from the Federal Reserve, increasing transparency in a constructive way. The version currently being debated would strike rules that have been in place since 1978 to keep monetary policy independent of political gameplaying. Opening up monetary policy to political pressure from politicians would be a mistake.
Makes sense, I suppose. On more than one occasion, especially with Richard Nixon, presidents leaned on the Fed to keep off the brakes until after the election.