I

103D CONGRESS

1ST SESSION H. R. 2917

To reform the Federal Reserve System.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 6, 1993

Mr. BLACKWELL introduced the following bill; which was referred to the

Committee on Banking, Finance and Urban Affairs

A BILL

To reform the Federal Reserve System.

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

3 SECTION 1. AUTHORITY OF THE PRESIDENT TO APPOINT

4 THE MEMBERS OF THE FEDERAL OPEN MAR5 KET COMMITTEE.

6 (a) IN GENERAL.—Section 12A(a) of the Federal Re7 serve Act (12 U.S.C. 263(a)) is amended by striking

8 ‘‘five’’ and all that follows through the end of the second

9 sentence and inserting the following: ‘‘5 individuals ap10 pointed by the President, by and with the advice and con11 sent of the Senate, and after consultation with, and con-
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1 sideration of candidates selected by, the Federal Advisory

2 Council.’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 subsection (a) shall apply to a position on the Federal

5 Open Market Committee on the first day occurring on or

6 after the date of the enactment of this Act that there is

7 a vacancy in the position.

8 SEC. 2. CONSULTATION BETWEEN THE FEDERAL OPEN

9 MARKET COMMITTEE AND THE SECRETARY

10 OF THE TREASURY, THE DIRECTOR OF THE

11 OFFICE OF MANAGEMENT AND BUDGET, AND

12 THE CHAIRMAN OF THE COUNCIL OF ECO13 NOMIC ADVISERS.

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

15 225a) is amended—

16 (1) by inserting ‘‘(a) IN GENERAL.—’’ before

17 ‘‘The Board’’ the 1st place such term appears; and

18 (2) by adding at the end the following:

19 ‘‘(b) CONSULTATION REQUIRED.—The Federal Open

20 Market Committee shall meet and consult, on a quarterly

21 basis, with the Secretary of the Treasury, the Director of

22 the Office of Management and Budget, and the Chairman

23 of the Council of Economic Advisers.’’.
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1 SEC. 3. COINCIDENCE OF THE TERM OF OFFICE OF CHAIR2 MAN OF THE BOARD OF GOVERNORS OF THE

3 FEDERAL RESERVE SYSTEM WITH THE TERM

4 OF OFFICE OF THE PRESIDENT.

5 (a) IN GENERAL.—The 2nd undesignated paragraph

6 of section 10 of the Federal Reserve Act (12 U.S.C. 242)

7 is amended in the 3rd sentence by striking ‘‘of four years’’

8 each place such term appears and inserting ‘‘ending with

9 the end of the term of office of the President’’.

10 (b) EFFECTIVE DATE.—The amendments made by

11 subsection (a) shall take effect on the first day occurring

12 on or after the date of the enactment of this Act that there

13 is a vacancy in the office of the Chairman of the Board

14 of Governors of the Federal Reserve System.

15 SEC. 4. AVAILABILITY OF THE BUDGET OF THE FEDERAL

16 RESERVE SYSTEM.

17 Section 1105 of title 31, United States Code, is

18 amended by adding at the end the following:

19 ‘‘(g) PUBLICATION OF THE BUDGET OF THE FED20 ERAL RESERVE SYSTEM.—

21 ‘‘(1) TRANSMISSION TO THE PRESIDENT.—Not

22 later than October 16 of each year, the Board of

23 Governors of the Federal Reserve System shall

24 transmit to the President the estimated receipts and

25 proposed expenditures of the Board and of the Fed-
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1 eral Reserve banks for the year and for each of the

2 2 immediately succeeding years.

3 ‘‘(2) TRANSMISSION TO THE CONGRESS WITH

4 THE BUDGET OF THE UNITED STATES.—The Presi5 dent shall transmit to the Congress, without change,

6 the matter transmitted pursuant to paragraph (1),

7 with the budget transmitted to the Congress under

8 subsection (a).’’.

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