Myth 4: The Federal Reserve is not audited | CMI Gold & Silver
Tuesday, May 30th, 2023 MST

Production and availability of certain products is limited, please consult your sales agent for details on product availability and delays.

Gold Product Prices Silver Product Prices Platinum Palladium
Questions? Call Us


Mon-Thur 7am - 5pm PST Fri 7am - 2pm PST

Myth 4: The Federal Reserve is not audited

In 5 myths debunked about the Federal Reserve, Bankrate’s Mark Hamrick points out that the Fed is audited by  Deloitte Touche Tohmatsu Ltd., using generally accepted accounting principles.  Therefore, the Fed is audited.  Not so fast.

While DTT  may audit the Fed, it does not delve into the Fed’s gold holdings.  DTT does not randomly pull gold bars and have them assayed so as to determine purity and weight. It does not send statements to the counties that have gold stored with the Fed certifying that the all the gold is there.  I doubt that DDT auditors visit the Fed’s vaults.

When Fed critics say that the Fed is not audited, they mean that the Fed is not audited by the General Accountability Office, which has the authority to audit all government agencies.  It can even declare certain expenditures illegal.   However, the GAO cannot audit the Fed.

In Hamrick’s Myth #2 rebuttal, he asserts that the Fed is part of the federal government. If the Fed were an agency of the federal government, the GAO could audit at any time.

For decades, Fed critics have called for an audit to verify gold holdings.  The DTT audits do not address this issue.  Until the GAO audits the Fed, critics are right that the Fed is not audited.

Leave a Comment