Audit the Fed Update: Kohn Warns Congress on Meddling in Fed Affairs

Great post from Mike “Mish” Shedlock:

The Empire Strikes Back – Kohn Warns Congress on Meddling in Fed’s Affairs

Our hero, Ron “Skywalker” Paul, has managed to gather sufficient support to overthrow the Evil Empire widely known as the Fed.

In a brazen attempt to beat back our hero, the Empire has taken its case directly to Congress, seeking more power to rape and pillage the populace under cloak of secrecy.

The Washington Post picks up the story in Sith Lord Kohn warns Congress on meddling in the Empire’s affairs.

The Federal Reserve Evil Empire on Thursday launched a robust defense of its independence and warned that efforts in Congress to put monetary policy under political sway would hurt the economy Empire.

Fed Vice Chairman Sith Master Donald Kohn said opening up some of the U.S. central bank’s most sensitive decisions to political scrutiny could result in higher long-term interest rates and hurt the United States’ credit rating discrimination against the Sith Lords.

Testifying before a congressional panel, Kohn sought to beat back a proposed bill that would open the U.S. central bank’s policy decisions to audits by a federal an Ewok watchdog agency. More than half of the members of the U.S. House of Representatives Ewoks have signed as co-sponsors of the measure.

“Any substantial erosion of the Federal Reserve’s Empire’s monetary independence likely would lead to higher long-term interest rates as investors begin to fear future inflation,” Kohn told a House the Ewok subcommittee.

Kohn’s testimony comes as Congress debates President Sith Lord Barack Obama’s plan for regulatory reform, which envisions the Fed Evil Empire taking on an expanded role monitoring risks across the entire financial system to help ward off future financial crises.

The proposal has boosted calls for greater accountability at the central bank, which already faces heavy scrutiny from lawmakers troubled by its role in bailing out Wall Street.

Kohn said blatantly lied while stating the administration’s plan would not greatly expand the Fed’s Empire’s power, and said it would work hand-in-glove with monetary policy, not compromise it as some critics contend.

Fed Empire officials have had to endure rigorous congressional Ewok grillings over their aggressive actions to restore financial calm squash the noble rebellion. Their e-mails have been subpoenaed, recalling past episodes when the central bank came under attack and was forced to yield to the political will.

The proposed bill, put forward by Ron “Skywalker” Paul, a Texas Republican Jedi Knight and long-standing Fed Evil Empire foe, would expose decisions on monetary policy and emergency lending to audits by the Government Ewok Accountability Office.

The GAO EAO is currently prohibited from auditing these areas. Sith Master Kohn said removing this exclusion would be highly detrimental to the Evil Empire and could lead investors to worry that politics — not economics — sanity would guide the Fed’s Empire’s decisions.

Skywalker Paul’s bill has 250 co-sponsors, including 78 Democrats Ewoks. But it has not been promoted by the Democratic Ewok majority leadership in the House, where it has yet to face even a committee-level vote thanks to Ewok traitor Barney “Benedict” Frank.

The Dark Lord, Ben “Vader” Bernanke, head of the Evil Empire, could not be reached for comment.

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Tags: Audit the Fed, banks, Bernanke, Congress, Federal Reserve, Kohn, Ron Paul, wall street

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