Fed audits - Does the central bank have skill?

There has been a significant amount of talk earlier this year about a Fed audit bill in Congress.  It has meant many things to many people. We know without doubt that the Fed is against any type of audit and a serious challenge to the Fed policies has been averted at this time. An audit bill would have been an infringement on its central bank independence. There is great potential for politicalization of the central bank; however, there is a clear question on whether the Fed is doing a good job. An audit bill is about power and power determines direction, but if there is no clarity on success at reaching goals, it seems as though review is necessary.

There is Congressional review of the central bank through testimony by the Fed chairman on its ability to hit its targets on inflation and unemployment, but there is little or no review of the work product that is produced by the Fed. A simple example is whether their forecasts are any good or whether the regulation that they place on banks are effective. Does the Fed hit their mandate? Is a delay in any rate rise appropriate? Does the regulatory powers employed improve financial stability? Perhaps there could be a better use of existing law, but whether the Fed is effective based on better oversight of government is not a wild idea.