Each year, we make more than 1,000 recommendations to help the federal government save money, address issues on our High Risk List, and significantly improve government operations.
This letter to the Federal Reserve outlines 4 open recommendations to prioritize. For example, the Federal Reserve should work with other federal banking regulators to communicate appropriate uses of alternative data sources—such as rent or utility payments—in credit underwriting.
The Federal Reserve didn't implement any recommendations we identified as a priority last year.
We regularly update priority recommendations here.
What GAO Found
In May 2021, GAO identified 3 priority recommendations for the Federal Reserve.
As of July 2023, the Federal Reserve had not implemented these priority recommendations and GAO identified 1 additional priority recommendation for the Federal Reserve, bringing the total number to 4. These recommendations involve the following areas:
- Blockchain technology
- Financial technology
- Stress testing of banking institutions
The Federal Reserve's attention to these issues could improve its ability to more effectively oversee risks to consumers and the safety and soundness of the U.S. banking system.
Why GAO Did This Study
Priority open recommendations are the GAO recommendations that warrant priority attention from heads of key departments or agencies because their implementation could save large amounts of money; improve congressional and/or executive branch decision-making on major issues; eliminate mismanagement, fraud, and abuse; or ensure that programs comply with laws and funds are legally spent, among other benefits. Since 2015 GAO has sent letters to selected agencies to highlight the importance of implementing such recommendations.
For more information, contact Daniel Garcia-Diaz at (202) 512-8678.