IB 

Union Calendar No. 884 

115TH CONGRESS 

2D SESSION H. R. 4278 

[Report No. 115–1117] 

To ensure that the operations of the Board of Governors of the Federal 

Reserve System remain independent from the credit policy of the United 

States, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 7, 2017 

Mr. HILL introduced the following bill; which was referred to the Committee 

on Financial Services 

JANUARY 2, 2019 

Additional sponsor: Mr. BARR

JANUARY 2, 2019 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on November 7, 2017] 


pamtmann on DSKBFK8HB2PROD with BILLS
2 

•HR 4278 RH

A BILL 

To ensure that the operations of the Board of Governors 

of the Federal Reserve System remain independent from 

the credit policy of the United States, and for other 

purposes. 


pamtmann on DSKBFK8HB2PROD with BILLS
3 

•HR 4278 RH

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 ‘‘Independence from Cred5 it Policy Act of 2017’’. 

6 SEC. 2. INDEPENDENCE FROM CREDIT POLICY. 

7 (a) RETURNING TO A MONETARY POLICY BALANCE

8 SHEET.— 

9 (1) IN GENERAL.—Not later than 1 year after 

10 the date of the enactment of this Act— 

11 (A) the Board of Governors of the Federal 

12 Reserve System shall transfer to the Department 

13 of the Treasury all covered assets that are neither 

14 gold stock, Treasury currency, nor direct obliga15 tions of the United States, foreign central banks, 

16 or the International Monetary Fund; and 

17 (B) the Secretary of the Treasury shall 

18 transfer to the Federal reserve banks direct obli19 gations of the United States of equivalent market 

20 value to such covered assets. 

21 (2) COVERED ASSETS DEFINED.—In this sub22 section, the term ‘‘covered assets’’ means all assets— 

23 (A) purchased through open-market oper24 ations by the Federal reserve banks; or 


pamtmann on DSKBFK8HB2PROD with BILLS
4 

•HR 4278 RH

1 (B) acquired through transactions under the 

2 following sections of the Federal Reserve Act (12 

3 U.S.C. 221 et seq.): 

4 (i) Section 10A before the date of the 

5 enactment of this Act. 

6 (ii) Section 10B. 

7 (iii) Section 13. 

8 (iv) Section 13A. 

9 (v) Section 24. 

10 (b) OPEN MARKET ASSET PURCHASES.—Section 14(b) 

11 (12 U.S.C. 355) of the Federal Reserve Act (relating to 

12 ‘‘Purchase and sale of obligations of United States, States, 

13 counties, etc.’’) is amended to read as follows: 

14 ‘‘(b) To buy and sell in the open market, at home or 

15 abroad, under the direction and regulations of the Federal 

16 Open Market Committee, gold stock, Treasury currency, or 

17 direct obligations of the United States, foreign central 

18 banks, or the International Monetary Fund. Nothing in this 

19 subsection shall be construed to limit advances under sec20 tion 10B, or discount loans under sections 13, 13A, or 24.’’. 

21 (c) MAINTAINING A MONETARY POLICY BALANCE

22 SHEET.— 

23 (1) ASSETS ACQUIRED UNDER EMERGENCY

24 LENDING.—Section 13(3) of the Federal Reserve Act 


pamtmann on DSKBFK8HB2PROD with BILLS
5 

•HR 4278 RH

1 (12 U.S.C. 343(3)) is amended by inserting after sub2 paragraph (E) following new subparagraph: 

3 ‘‘(F) Not later than 1 year after a Federal 

4 reserve bank acquires any assets under this para5 graph that are neither gold nor direct obligations 

6 of the United States, foreign central banks, or the 

7 International Monetary Fund— 

8 ‘‘(i) the Board shall transfer such as9 sets of the Federal reserve bank to the De10 partment of the Treasury; and 

11 ‘‘(ii) the Secretary of the Treasury 

12 shall transfer to the Federal reserve banks 

13 direct obligations of the United States of 

14 equivalent market value to the assets de15 scribed in clause (i).’’. 

16 (2) REPEAL OF AUTHORITY TO PROVIDE EMER17 GENCY ADVANCES TO GROUPS OF MEMBER BANKS.— 

18 Section 10A of the Federal Reserve Act (12 U.S.C. 

19 347a) is repealed. 

20 (3) ASSETS ACQUIRED THROUGH ADVANCES TO

21 MEMBER BANKS.—The second undesignated para22 graph of subsection (a) of section 10B of the Federal 

23 Reserve Act (12 U.S.C. 347b(a)) is amended— 

24 (A) by inserting ‘‘not’’ before ‘‘secured by 

25 mortgage loans’’; and 


pamtmann on DSKBFK8HB2PROD with BILLS
6 

•HR 4278 RH

1 (B) by striking ‘‘lowest discount rate’’ and 

2 inserting ‘‘highest discount rate’’. 


pamtmann on DSKBFK8HB2PROD with BILLS

pamtmann on DSKBFK8HB2PROD with BILLS
Union Calendar No. 884 

115TH CONGRESS 

2D SESSION H. R. 4278 

[Report No. 115–1117] 

A BILL 

To ensure that the operations of the Board of GovStates, and for other purposes. independent from the credit policy of the United ernors of the Federal Reserve System remain 

JANUARY 2, 2019 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


pamtmann on DSKBFK8HB2PROD with BILLS