Sanders modifies Fed audit legislation

Senate Banking Committee Chairman Chris Dodd (D-Conn.) Thursday threw his support behind modified legislation requiring new transparency of the Federal Reserve.

Sen. Bernie Sanders (I-Vt.) said on the Senate floor that his highly-controversial legislation to require audits of the central bank would be modified. Shortly thereafter, Dodd said he would support the bill.

The Senate is expected to vote on the measure later on Thursday. The details of the changes were not released immediately.

"We want an independent Fed," Sanders said on the floor. Sanders said the legislation is designed not to interfered with the monetary policy duties of the central bank. Sanders has called repeatedly for the central bank to disclose how the bank lent or committed trillions of dollars during the financial crisis.

Federal Reserve Chairman Ben Bernanke has argued various audit requirements would "seriously threaten" the monetary policy independence of the Fed. Those comments were made before Sanders said the measure would be modified.