I 

118TH CONGRESS 

2D SESSION H. R. 10530 

To amend the Federal Reserve Act to modify the goals of the Board of 

Governors of the Federal Reserve System, to eliminate class A and 

B directors from the board of directors of each Federal reserve bank, 

and to establish certain reporting requirements for the Board of Governors, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 19, 2024 

Mr. KHANNA (for himself, Ms. WILSON of Florida, Ms. NORTON, Ms. CLARKE

of New York, Ms. SCHAKOWSKY, Ms. TLAIB, and Mr. JACKSON of Illinois) introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To amend the Federal Reserve Act to modify the goals 

of the Board of Governors of the Federal Reserve System, to eliminate class A and B directors from the board 

of directors of each Federal reserve bank, and to establish certain reporting requirements for the Board of Governors, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Coretta Scott King 

5 Full Employment Federal Reserve Act of 2024’’. 


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1 SEC. 2. MODIFICATION OF THE GOALS OF THE BOARD OF 

2 GOVERNORS OF THE FEDERAL RESERVE SYS3 TEM AND THE FEDERAL OPEN MARKET COM4 MITTEE. 

5 Section 2A of the Federal Reserve Act (12 U.S.C. 

6 225a) is amended— 

7 (1) by striking ‘‘The Board of Governors’’ and 

8 inserting ‘‘(a) IN GENERAL.—The Board of Gov9 ernors shall’’; 

10 (2) by striking ‘‘stable prices’’ and inserting ‘‘a 

11 stable rate of inflation’’; and 

12 (3) by inserting at the end the following: 

13 ‘‘(b) GENERAL POLICY: CONGRESSIONAL REVIEW.— 

14 In this section, the term ‘maximum employment’ means 

15 a labor market in the United States in which— 

16 ‘‘(1) job seekers can find work; 

17 ‘‘(2) involuntary part-time work is at a min18 imum; 

19 ‘‘(3) median wages are rising with worker pro20 ductivity; and 

21 ‘‘(4) disparities in rates of unemployment and 

22 pay between and among racial, gender, urban, rural, 

23 and other demographic groups have reached their 

24 lowest practicable level.’’. 


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1 SEC. 3. PROMOTING A DIVERSE, REPRESENTATIVE FED2 ERAL RESERVE. 

3 Section 4 of the Federal Reserve Act (38 Stat. 251) 

4 is amended— 

5 (1) in the provision designated ‘‘Fifth’’ of the 

6 fourth undesignated paragraph, by inserting after 

7 ‘‘employees.’’ the following: ‘‘In making the appoint8 ment of a president, the bank shall interview at least 

9 one individual reflective of gender diversity, one indi10 vidual reflective of racial or ethnic diversity, and one 

11 individual who has experience in scholarship or advo12 cacy on behalf of the interests of consumers, labor, 

13 or other sectors of society whose interests are dis14 tinct from those of the banking and financial serv15 ices sector. Not later than January 1 of each year, 

16 the bank shall submit a report describing the appli17 cant pool demographics for the proceeding fiscal 

18 year to the Committee on Financial Services of the 

19 House of Representatives, the Committee on Bank20 ing, Housing, and Urban Affairs of the Senate, and 

21 the Office of the Inspector General for the Board of 

22 Governors of the Federal Reserve System and the 

23 Consumer Financial Protection Bureau.’’; 

24 (2) in the ninth undesignated paragraph, by 

25 striking ‘‘, and divided into three classes, designated 

26 as classes A, B, and C’’; 


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1 (3) by striking the tenth, eleventh, fourteenth, 

2 sixteenth, seventeenth, and eighteenth undesignated 

3 paragraphs; 

4 (4) in the twelfth undesignated paragraph— 

5 (A) by striking ‘‘Class C shall consist of 

6 three members who shall be designated by the 

7 Board of Governors of the Federal Reserve Sys8 tem.’’ and inserting ‘‘Members of the board of 

9 directors shall be designated by the Board of 

10 Governors of the Federal Reserve System.’’; 

11 and 

12 (B) by striking ‘‘class C’’; 

13 (5) in the fifteenth undesignated paragraph, by 

14 striking ‘‘of class C’’; 

15 (6) in the twentieth undesignated paragraph— 

16 (A) by striking ‘‘Class C directors’’ and in17 serting ‘‘Directors’’; 

18 (B) by striking ‘‘of class C’’; and 

19 (C) by striking ‘‘the third class C director’’ 

20 and inserting ‘‘another director of the Board, 

21 designated by the Board of Governors of the 

22 Federal Reserve System,’’; and 

23 (7) in the twenty-fourth undesignated para24 graph— 


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1 (A) by striking ‘‘of classes A, B and C, re2 spectively,’’; 

3 (B) by striking ‘‘one’’ the first place it ap4 pears and inserting ‘‘three’’; 

5 (C) by striking ‘‘of each class whose term’’ 

6 the second place it appears and inserting 

7 ‘‘whose terms’’; 

8 (D) by striking ‘‘one whose term’’ the first 

9 place it appears and inserting ‘‘three whose 

10 terms’’; 

11 (E) by striking ‘‘one whose term’’ the sec12 ond place it appears and inserting ‘‘three whose 

13 terms’’; and 

14 (F) by striking ‘‘in the several classes of’’ 

15 and inserting ‘‘on the board of’’. 

16 SEC. 4. STUDIES. 

17 Section 2B(b) of the Federal Reserve Act (12 U.S.C. 

18 225b(b)) is amended— 

19 (1) by striking ‘‘The Board shall’’ and inserting 

20 ‘‘(1) IN GENERAL.—The Board shall’’; and 

21 (2) by inserting at the end the following: 

22 ‘‘(2) INFLATION AND EMPLOYMENT FIGURES.—In 

23 each report required under paragraph (1), the Board shall 

24 include— 


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1 ‘‘(A) the results of a study of the past estimates 

2 of the Board on longer-run unemployment rates, in3 cluding— 

4 ‘‘(i) an assessment of the accuracy of such 

5 estimates; 

6 ‘‘(ii) an assessment of the effect of such 

7 estimates on decisions of the Board; and 

8 ‘‘(iii) recommendations of the Board to im9 prove the accuracy of such estimates; 

10 ‘‘(B) a study of the inflation target, including— 

11 ‘‘(i) information on each measurement of 

12 inflation used to calculate such target; 

13 ‘‘(ii) information on each period during 

14 which the Board determines that any such 

15 measurement is above or below such target; and 

16 ‘‘(iii) a summary of the arguments for and 

17 against setting the inflation target at 2 percent 

18 inflation; 

19 ‘‘(C) an estimate of the impact that the pro20 jected pathway for the Federal funds rate is likely 

21 to have on labor market conditions and on a variety 

22 of demographic groups, including demographic 

23 groups that experience unemployment rates above 

24 the national rate; 


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1 ‘‘(D) an assessment of whether alternative mon2 etary policy approaches would affect such conditions 

3 and on such groups; and 

4 ‘‘(E) a description of the confidence interval on 

5 each projection that the Federal Reserve System, or 

6 any participant in the Federal Open Market Com7 mittee, provides for the longer-run rate of unemploy8 ment.’’. 

Æ 


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