The Federal Reserve has declined to provide transparency regarding its foreign gold holdings, even in the face of a direct inquiry from a sitting congressman and a Freedom of Information Act (FOIA) request, according to a report from Money Metals Exchange.
The issue first came to light when Congressman Alex Mooney, R-W.Va., asked Federal Reserve Chairman Jerome Powell about the central bank’s foreign gold holdings. Rather than providing a straightforward answer, Powell gave evasive non-responses, simply stating that the Fed does not own gold but holds it as a custodian.
Seeking further clarity, Headline USA filed a FOIA request with the Fed, asking for records on the amount of gold held in the Federal Reserve Bank of New York’s vault, as well as the ownership stakes of the central bank’s clients. The publication also requested information on the Fed’s gold holdings prior to Russia’s invasion of Ukraine in 2022.
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However, the Fed denied the FOIA request, saying “Board staff consulted with staff at the Federal Reserve Bank of New York (‘Reserve Bank’) and have been advised that such records, if they exist, would be Reserve Bank records, and consequently, not subject to the Board’s Rules Regarding Availability of Information.”
The refusal has raised concerns among sound-money advocates, who argue that the Fed is deliberately obfuscating the details of its gold holdings. Chris Powell, secretary-treasurer of the Gold Anti-Trust Action Committee, accused the Fed of not wanting to disclose the information, even though it could easily obtain the data from the New York Fed.
The timing of this evasion is particularly concerning, as reports suggest that countries are increasingly removing their gold and other assets from the United States, potentially due to fears over the use of sanctions in the wake of the Russia-Ukraine war.
Information for this story was found via Money Metals Exchange, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
