GOP Senate Takeover Would Put Fed Under Microscope | Janet YELLEN | Dow Jones Business News | Victoria McGrane

"I would be very concerned about legislation that would subject the Federal Reserve to short-term political pressures that could interfere with that independence," Ms. Yellen said during her November 2013 confirmation hearing. She also argued that the Fed is "one of the most transparent central banks in the world."  
A companion measure passed the House in September, but Senate Majority Leader Harry Reid (D., Nev.) has kept it off the Senate floor. Fed officials, led by Ms. Yellen, oppose Mr. Paul's bill because they believe it could compromise the central bank's political independence.

WASHINGTON--A Republican takeover of the U.S. Senate on Election Day would promise increased political turbulence for the Federal Reserve.

 Financial executives say a GOP-led Senate would ratchet up congressional scrutiny of the central bank's interest- rate policies as well as its regulatory duties as overseer of the nation's largest financial firms. Republicans haven't controlled the Senate since before the 2008 financial crisis and recession, which put a spotlight on the Fed and its powers.

"If the Republicans take control of the Senate and thus have control of both the House and the Senate--two words for the Federal Reserve: Watch out," said Camden Fine, president of the Independent Community Bankers of America.

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