Scott Alvarez, the Federal Reserve's general counsel, on Friday pleaded with lawmakers to vote against proposals to scrutinise the Fed, saying that the decision to do so could be disastrous for the American economy.

Alvarez told the House Committee on Financial Services that increasing the Government Accountability Office's (GAO) remit to audit affairs would undermine the Fed and divest it of its ability to act independently, increasing inflation fears and interest rates. Central banks require