WASHINGTON (AP) - The Republican-controlled House approved a bill Thursday that supporters said would make the Federal Reserve more transparent and accountable, defying a veto threat.
The bill would direct the Fed to be more open in communicating monetary policy decisions and require the central bank to use a mathematical rule in deciding on interest rates. The House approved the measure on a 241-185 vote.
Federal Reserve Chair Janet Yellen called the bill's approach unworkable and said it would lead to "poor economic outcomes." The White House said in its veto threat statement the bill could compromise the Fed's independence and undercut its credibility as it acts in the nation's long-term economic interests.
House Speaker Paul Ryan, R-Wis., praised the bill, saying that forcing the Fed to explain to the public how it makes decisions would give Americans greater confidence in those decisions.
If the bill is enacted, "families could better plan for the future, invest their money wisely and create opportunity for all of us," Ryan said.
The bill's sponsor, Rep. Bill Huizenga, R-Mich., said the measure provides the Fed with the flexibility necessary to conduct monetary policy "but holds the Fed accountable by requiring it to communicate its policy to Congress and the American people."