Federal Reserve Reform Act of 1993

Summary: Federal Reserve Reform Act of 1993 - Amends the Federal Reserve Act to require the Federal Open Market Committee (the Committee) to consult with the Secretary of the Treasury, the Director of the Office of Management and Budget, and the chairman of the Council of Economic Advisers before the Federal Reserve Board submits to the Congress certain mandated reports. 
Changes from August to January the calendar year expiration date of the term of the Chairman of the Federal Reserve. 
Mandates immediate public disclosure by the Committee of each change in intermediate monetary policy targets (monetary and credit aggregates, prices, interest rates, or bank reserves) which it adopts. 
Permits the Comptroller General to audit monetary policy deliberations, decisions, or actions, including transactions made under the Committee's direction. 
Requires the Board to submit annually to the President its estimated receipts and proposed expenditures for the current year, and the next two succeeding years (including those of the Federal Reserve Banks).

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve Reform Act of 
1993''.

SEC. 2. CONSULTATION BETWEEN FEDERAL OPEN MARKET COMMITTEE AND THE 
              SECRETARY OF THE TREASURY, THE DIRECTOR OF THE OMB, AND 
              THE CHAIRMAN OF THE CEA.

    Section 2A of the Federal Reserve Act (12 U.S.C. 225a) is amended--
            (1) in the first sentence, by striking ``The Board of 
        Governors'' and inserting ``(a) In General.--The Board of 
        Governors''; and
            (2) by adding at the end the following new subsection:
    ``(b) Consultation Required.--The Federal Open Market Committee 
shall meet and consult with the Secretary of the Treasury, the Director 
of the Office of Management and Budget, and the chairman of the Council 
of Economic Advisors--
            ``(1) during the 30-day period immediately preceding the 
        date on which each report required under the second sentence of 
        subsection (a) is submitted to the Congress by the Board of 
        Governors; and
            ``(2) during the 30-day period beginning on the date which 
        is 100 days immediately preceding the date by which the 
        President is required to submit the budget under section 
        1105(a) of title 31, United States Code.''.

SEC. 3. APPOINTMENT OF THE CHAIRMAN AND VICE CHAIRMAN.

    (a) Appointment of the Chairman and Vice Chairman.--The second 
paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 242) is 
amended by striking the third sentence and inserting the following: 
``The President shall appoint, by and with the advice and consent of 
the Senate, one member of the Board to serve as Chairman. The term of 
such member as Chairman shall expire on January 31 of the first 
calendar year beginning after the end of the term of the President who 
appointed such member as Chairman. If a member appointed as Chairman 
does not complete the term of such office as established in the 
preceding sentence, the President shall appoint, by and with the advice 
and consent of the Senate, another member to complete the unexpired 
portion of such term. The President shall also appoint, by and with the 
advice and consent of the Senate, one member of the Board to serve as 
Vice Chairman for a term of 4 years. The Chairman and the Vice Chairman 
may each serve after the end of their respective terms until a 
successor has taken office.''.
    (b) Performance of Duties.--The second paragraph of section 10 of 
the Federal Reserve Act (12 U.S.C. 242) (as amended by subsection (a)) 
is amended by inserting after the seventh sentence the following: ``In 
the event of the absence or unavailability of the Chairman, the Vice 
Chairman or (in the Vice Chairman's absence) another member of the 
Board may be designated by the Chairman to perform the duties of the 
office of the Chairman. If a vacancy occurs in the office of the 
Chairman, the Vice Chairman shall perform the duties of the Chairman 
until a successor takes office. If a vacancy occurs in the office of 
the Vice Chairman while the office of the Chairman is vacant, the 
member of the Board with the most years of service on the Board shall 
perform the duties of the Chairman until a successor takes office.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date 
        of enactment of this Act.
            (2) Current chairman to complete term.--Notwithstanding the 
        amendment made by subsection (a), any member who holds the 
        office of Chairman of the Board of Governors of the Federal 
        Reserve System on the date of enactment of this Act shall 
        continue in such office during the remainder of the term to 
        which such member was appointed.

SEC. 4. DISCLOSURE OF INTERMEDIATE TARGETS.

    Section 12A(b) of the Federal Reserve Act (12 U.S.C. 263(b)) is 
amended by adding at the end the following: ``Notwithstanding any other 
provision of law, each change, of any nature whatsoever, in the 
intermediate targets for monetary policy, which change is adopted by 
the Committee, shall be disclosed to the public on the date on which 
such change is adopted. For purposes of this subsection, the term 
`intermediate targets' means any policy objectives regarding monetary 
aggregates, credit aggregates, prices, interest rates, or bank 
reserves.''.

SEC. 5. AUDIT OF FINANCIAL TRANSACTIONS BY COMPTROLLER GENERAL.

    Section 714(b) of title 31, United States Code (relating to audits 
by the Comptroller General), is amended--
            (1) in paragraph (1), by inserting ``or'' at the end;
            (2) by striking paragraphs (2) and (3); and
            (3) by amending paragraph (4) to read as follows:
            ``(2) memoranda, letters, or other written communications 
        between or among members of the Board of Governors of the 
        Federal Reserve System or officers or employees of the Federal 
        Reserve System relating to any transaction described in 
        paragraph (1).''.

SEC. 6. BOARD SUBJECT TO BUDGET PROCESS.

    Section 1105 of title 31, United States Code (relating to budget 
contents and submission to Congress), is amended by adding at the end 
the following new subsection:
    ``(g) Federal Reserve Board Budget Treatment.--Not later than 
October 16 of each year, the estimated receipts and proposed 
expenditures of the Board of Governors of the Federal Reserve System 
and all Federal Reserve Banks for the current year and the next 2 
succeeding years shall be transmitted by the Board to the President. 
The President shall transmit to the Congress the information received 
in accordance with this subsection, without change, together with the 
budget transmitted to the Congress under subsection (a).''.