Frank expects no changes to Fed bill

Rep. Barney Frank (D-Mass.) on Wednesday indicated he doesn’t expect
changes on the House floor to a measure that would increase scrutiny of
the Federal Reserve.

Frank, the chairman of the Financial Services Committee, opposes the measure sponsored by Rep. Ron Paul (R-Texas), but told reporters that he does not see language being changed on the House floor.

{mosads}“Absent some change in the way the public is reacting, I don’t see any changes,” Frank said.

Paul’s bill, co-sponsored by Rep. Alan Grayson (D-Fla.), would add new audits of the Federal Reserve, which has come under increased criticism and scrutiny from lawmakers since the financial crisis.

It is one of the most closely watched measures included in wide-ranging legislation aimed at beefing up regulation across the financial industry that the House is set to consider next week.

Paul has been a fervent critic of the Federal Reserve for decades, but his effort to increase audits of the Fed gained more than 300 co-sponsors in the House this year as public opinion soured on government bailouts for financial firms.

Fed Chairman Ben Bernanke wrote an op-ed in The Washington Post last weekend in part to criticize the Paul amendment. The issue will likely come up on Thursday when Bernanke heads to the Senate Banking Committee for a confirmation hearing for a second term as Fed chairman.