In a sign of how potentially potent the issue of the Federal Reserve and monetary policy still is, the insurgent leader of the Democrats in Iowa and New Hampshire, Bernie Sanders, joined with Rand Paul and most Republicans to vote yes on Paul’s Audit the Fed bill, which was nevertheless scuttled by a majority of Democrats:

Senate Democrats blocked a vote Tuesday on legislation from Sen. Rand Paul, R-Ky., that would have required an audit and greater transparency on monetary policy-making from the Federal Reserve, the powerful central banking system that sets interest rates and manages the money supply.

The bill won near-unanimous Republican support and votes from Sen. Tammy Baldwin, D-Wis., and Vermont independent Sen. Bernie Sanders, who is seeking the Democratic presidential nomination, but fell short of the 60 votes needed for consideration.

Too much of the Fed’s business is conducted in secret, known only to the bankers on its various boards and committees. In 2010, I inserted an amendment in Dodd-Frank to audit the emergency lending by the Federal Reserve during the financial crisis. As a result of this audit, we learned that an institution that was created to serve all Americans had been hijacked by the very bankers it regulates.

We must expand on that first review of the Fed’s activities. Requiring the Government Accountability Office to conduct a full and independent audit of the Fed each and every year, would be an important step towards making the Federal Reserve a more democratic institution that is responsive to the needs of ordinary Americans rather than the billionaires on Wall Street.