I 

112TH CONGRESS 

1ST SESSION H. R. 3428 

To amend the Federal Reserve Act to replace the Federal Open Market 

Committee members representing the Federal Reserve banks with additional members appointed by the President, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 15, 2011 

Mr. FRANK of Massachusetts introduced the following bill; which was referred 

to the Committee on Financial Services 

A BILL 

To amend the Federal Reserve Act to replace the Federal 

Open Market Committee members representing the Federal Reserve banks with additional members appointed 

by the President, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. COMPOSITION OF FEDERAL OPEN MARKET 

4 COMMITTEE. 

5 (a) IN GENERAL.—Section 12A(a) of the Federal Re6 serve Act is amended to read as follows: 

7 ‘‘(a) ESTABLISHMENT.— 


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1 ‘‘(1) IN GENERAL.—There is hereby created a 

2 Federal Open Market Committee (hereinafter re3 ferred to as the ‘Committee’), which shall consist 

4 of— 

5 ‘‘(A) the members of the Board of Gov6 ernors of the Federal Reserve System; and 

7 ‘‘(B) 5 additional members appointed by 

8 the President, by and with the advice and con9 sent of the Senate (hereinafter referred to as 

10 ‘additional members’). 

11 ‘‘(2) SELECTION, REQUIREMENTS, AND AU12 THORITIES OF ADDITIONAL MEMBERS.—The addi13 tional members shall— 

14 ‘‘(A) be selected by the President to give 

15 due regard to a fair representation of the finan16 cial, agricultural, industrial, commercial, con17 sumer, and labor interests, and geographical di18 versity, of the United States; 

19 ‘‘(B) be selected in a manner so as to en20 sure that no more than 1 additional member is 

21 appointed from any particular Federal Reserve 

22 district; 

23 ‘‘(C) only be removed by the President for 

24 cause; 


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1 ‘‘(D) initially be appointed for terms of 3, 

2 4, 5, 6, and 7 years, respectively, and appointed 

3 for staggered 7-year terms thereafter; 

4 ‘‘(E) upon the expiration of each of their 

5 terms of office, continue to serve until their 

6 successor is appointed and confirmed; 

7 ‘‘(F) with respect to an additional member 

8 appointed to fill the remainder of an unexpired 

9 term and subject to subparagraph (E), only 

10 serve until the end of such term; 

11 ‘‘(G) devote their entire time to the busi12 ness of the Committee; 

13 ‘‘(H) each receive actual necessary trav14 eling expenses; 

15 ‘‘(I) each be provided with office space in 

16 both— 

17 ‘‘(i) a building used by the Board of 

18 Governors of the Federal Reserve System 

19 in Washington, District of Columbia; and 

20 ‘‘(ii) a building used by the Federal 

21 Reserve bank of the Federal Reserve dis22 trict from which the additional member 

23 was selected; and 

24 ‘‘(J) each have the authority to make use 

25 of— 


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1 ‘‘(i) the staff of the Board of Gov2 ernors of the Federal Reserve System; and 

3 ‘‘(ii) the staff of the Federal Reserve 

4 bank of the Federal Reserve district from 

5 which the additional member was selected. 

6 ‘‘(3) MEETINGS.—The meetings of said Com7 mittee shall be held at Washington, District of Co8 lumbia, at least four times each year upon the call 

9 of the chairman of the Board of Governors of the 

10 Federal Reserve System or at the request of any 

11 three members of the Committee. 

12 ‘‘(4) USE OF NEW YORK RESEARCH STAFF.— 

13 Each member of the Committee shall have the au14 thority to make use of the research staff of the Fed15 eral Reserve bank of New York.’’. 

16 (b) PAY OF ADDITIONAL MEMBERS.—Section 5314 

17 of title 5, United States Code, is amended by adding at 

18 the end the following: 

19 ‘‘Additional members of the Federal Open Market 

20 Committee (5).’’. 

Æ 


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