US Senate to hold Fed reform hearing on March 3-aide

WASHINGTON (Reuters) - The Senate Banking committee is expected to hold a hearing next week on reforms aimed at the Federal Reserve, a Senate aide said on Monday, as lawmakers push for more transparency at the U.S. central bank.

The hearing will be scheduled for the afternoon of March 3, the aide said. Gathering economists and other central banking experts in front of the Senate Banking, Housing and Urban Affairs committee to discuss Fed reforms is the fulfillment of a promise made by the panel's new chair, Richard Shelby.

The Alabama Republican is among the lawmakers who have been critical of the Fed, and who believe the central bank's broad monetary policy and regulatory powers should be reined in.

While Shelby had been expected to hold a hearing on the Fed, the date of the event was previously not disclosed. The Senate aide said the timing could change at the last minute, but for now, it was set for March 3.

The hearing expected next Tuesday comes a week after Fed Chair Janet Yellen delivers her first semi-annual testimony this year in front of Congress, and comes as the "Audit the Fed" movement is gaining steam from Republican Senator Rand Paul.

Paul, a potential 2016 presidential candidate, re-introduced his "Audit the Fed" bill last month, which would expose the central bank's internal monetary policy discussions to public scrutiny.

The Republican takeover of the Senate this year has opened up a path for lawmakers to attack Wall Street reforms put in place in 2010, and to challenge the Fed's long-held independence.

President Barack Obama would likely veto any stand-alone legislation that would threaten the Fed's independence. However, there is also a chance it could be added as an amendment to "must-pass" legislation, such as with the bill to fund the Department of Homeland Security or the U.S. debt ceiling.

Key Democrats on the Senate Banking committee have said they will not support a Fed audit bill.

State bank associations are also voicing opposition to the Fed audit campaign

Republicans say the Fed needs greater transparency after it gained too much power during the financial crisis. Fed officials say exposing policy discussions to public scrutiny would increase political pressure on the independent government body.

(Reporting by Michael Flaherty; Editing by Chizu Nomiyama)