What assurances are there that the Federal Reserve does not give money to banks?
My understanding of the operation of the United States Federal Reserve Bank is that it invents dollars by a unilateral, unbalanced credit to its own account and then it loans this money to member banks. In some cases this money is loaned to non-bank institutions of the Federal Reserves choosing and that all of these loans, whether to member banks or non-member institutions are secret.What assurance is there that the Federal Reserve is not giving the money to the various recipients as opposed to lending it?For example, let's imagine the Federal Reserve "loans" $400 billion to JP Morgan Chase. What is to prevent them from "forgiving" this loan, meaning to allow the recipient to never pay it back? Or, in a similar vein, simply making the terms of the loan essentially infinite, for example making it a zero coupon loan for 5000 years, which is effectively a gift.What assurance do members of the public have that this is not occurring?