Anna 
In the aftermath of Federal Reserve Chairman Jerome Powell’s evasion of questions regarding the central bank’s foreign gold holdings, concerns about transparency have escalated further. The Fed’s recent refusal to comply with a Freedom of Information Act (FOIA) request for records on these holdings has only added fuel to the fire.
This lack of transparency from the Federal Reserve comes at a critical juncture, coinciding with reports of countries withdrawing their gold and other assets from the U.S. amidst the unprecedented Western sanctions imposed on Russia following its invasion of Ukraine. A 2023 Invesco survey highlighted the apprehensions of a “substantial percentage” of central banks regarding the freezing of nearly half of Russia’s $650 billion gold and forex reserves by the U.S. and its allies.
The issue was brought to light when Rep. Alex Mooney, R-W.Va., queried Powell in a December letter, seeking clarity on the matter. However, Powell’s response last month offered little in terms of concrete answers, asserting that the Federal Reserve does not own gold but acts as a custodian for other entities—a statement that did little to assuage concerns.
Subsequently, Headline USA filed a FOIA request with the Fed, seeking records pertaining to the quantity of gold held by the Federal Reserve Bank of New York, as well as details on the ownership stake of each central bank/government client in that gold. However, the request was denied by the Federal Reserve on Wednesday.
The Fed justified its denial by stating that such records, if they exist, would be classified as Reserve Bank records and therefore not subject to the Board’s Rules Regarding Availability of Information. The suggestion to take the request to the New York Fed was moot, as the institution is not subject to FOIA.
In response to the Fed’s lack of transparency, sound-money advocates have criticized the evasion of pertinent questions. Chris Powell, secretary-treasurer of the Gold Anti-Trust Action Committee, emphasized the Fed’s reluctance to disclose information despite the possibility of accessing it through the New York Fed. He highlighted the importance of asking relevant questions about the operations of the Federal Reserve System.
Stefan Gleason, CEO of Money Metals Exchange, echoed similar sentiments, suggesting that the Fed’s opacity surrounding foreign gold withdrawals reflects poorly on U.S. monetary and foreign policy. The reluctance to disclose such information underscores broader concerns about transparency and accountability within the Federal Reserve.
