I 

115TH CONGRESS 

1ST SESSION H. R. 4278 

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 

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. 

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 

5 Credit Policy Act of 2017’’. 

6 SEC. 2. INDEPENDENCE FROM CREDIT POLICY. 

7 (a) RETURNING TO A MONETARY POLICY BALANCE

8 SHEET.— 


dlhill on DSK3GLQ082PROD with BILLS
2 

•HR 4278 IH

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

2 the date of the enactment of this Act— 

3 (A) the Board of Governors of the Federal 

4 Reserve System shall transfer to the Depart5 ment of the Treasury all covered assets that are 

6 neither gold stock, Treasury currency, nor di7 rect obligations of the United States, foreign 

8 central banks, or the International Monetary 

9 Fund; and 

10 (B) the Secretary of the Treasury shall 

11 transfer to the Federal reserve banks direct ob12 ligations of the United States of equivalent 

13 market value to such covered assets. 

14 (2) COVERED ASSETS DEFINED.—In this sub15 section, the term ‘‘covered assets’’ means all as16 sets— 

17 (A) purchased through open-market oper18 ations by the Federal reserve banks; or 

19 (B) acquired through transactions under 

20 the following sections of the Federal Reserve 

21 Act (12 U.S.C. 221 et seq.): 

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

23 enactment of this Act. 

24 (ii) Section 10B. 

25 (iii) Section 13. 


dlhill on DSK3GLQ082PROD with BILLS
3 

•HR 4278 IH

1 (iv) Section 13A. 

2 (v) Section 24. 

3 (b) OPEN MARKET ASSET PURCHASES.—Section 

4 14(b) (12 U.S.C. 355) of the Federal Reserve Act (relat5 ing to ‘‘Purchase and sale of obligations of United States, 

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

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

8 or abroad, under the direction and regulations of the Fed9 eral Open Market Committee, gold stock, Treasury cur10 rency, or direct obligations of the United States, foreign 

11 central banks, or the International Monetary Fund. Noth12 ing in this subsection shall be construed to limit advances 

13 under section 10B, or discount loans under sections 13, 

14 13A, or 24.’’. 

15 (c) MAINTAINING A MONETARY POLICY BALANCE

16 SHEET.— 

17 (1) ASSETS ACQUIRED UNDER EMERGENCY

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

19 Act (12 U.S.C. 343(3)) is amended by adding at the 

20 end the following new subparagraph: 

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

22 reserve bank acquires any assets under this 

23 paragraph that are neither gold nor direct obli24 gations of the United States, foreign central 

25 banks, or the International Monetary Fund— 


dlhill on DSK3GLQ082PROD with BILLS
4 

•HR 4278 IH

1 ‘‘(i) the Board shall transfer such as2 sets of the Federal reserve bank to the De3 partment of the Treasury; and 

4 ‘‘(ii) the Secretary of the Treasury 

5 shall transfer to the Federal reserve banks 

6 direct obligations of the United States of 

7 equivalent market value to the assets de8 scribed in clause (i).’’. 

9 (2) REPEAL OF AUTHORITY TO PROVIDE EMER10 GENCY ADVANCES TO GROUPS OF MEMBER BANKS.— 

11 Section 10A of the Federal Reserve Act is repealed. 

12 (3) ASSETS ACQUIRED THROUGH ADVANCES TO

13 MEMBER BANKS.—The second undesignated para14 graph of subsection (a) of section 10B of the Fed15 eral Reserve Act is amended— 

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

17 mortgage loans’’; and 

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

19 inserting ‘‘highest discount rate’’. 

Æ 


dlhill on DSK3GLQ082PROD with BILLS