(1) by redesignating subsections (b) and (c) as 
subsections (d) and (e), respectively; and 
(2) by inserting after subsection (a) the fol-
lowing new subsections: 
‘‘(b) POLICY TRANSPARENCY.— 
‘‘(1) MONETARY POLICY STRATEGY.— 
‘‘(A) IN GENERAL.—The Committee shall 
annually establish exactly 1 monetary policy 
strategy, which shall serve as a non-technical 
public communication of the Committee’s con-
sensus expectation for the conduct of monetary 
policy during that calendar year. 
‘‘(B) 
REQUIREMENTS.—Each 
monetary 
policy strategy of the Committee shall include 
the following: 
‘‘(i) A plain English description of 
how the Committee would adjust each of 
the following monetary policy instruments 
in reaction to changes in a small and well- 
defined set of publicly available economic 
indicators: 
‘‘(I) Short-term interest rate tar-
gets established by the Committee. 
‘‘(II) Open-market operations au-
thorized under section 14. 
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‘‘(III) 
Earnings 
on 
balances 
maintained at a Federal reserve bank 
by or on behalf of a depository institu-
tion under section 19(b)(12). 
‘‘(ii) An identification of 1 monetary 
policy instrument from the list in clause (i) 
that the Committee expects to use as the 
primary instrument for implementing the 
monetary policy strategy described under 
subparagraph (A). 
‘‘(2) REFERENCE MONETARY POLICY RULES.— 
In addition to the monetary policy strategy required 
under paragraph (1), the Committee shall annually 
adopt at least 1 and not more than 3 reference mon-
etary policy rules, each of which shall mathemati-
cally express how the primary monetary policy in-
strument identified under paragraph (1)(B)(ii) re-
acts to changes in a small and well-defined set of 
publicly available economic indicators. 
‘‘(3) DEVIATIONS.—Nothing in this subsection 
shall be construed to prevent the Committee from 
setting short-term interest rate targets, conducting 
open-market operations, or paying earnings on bal-
ances pursuant to section 19(b)(12) in a manner 
that deviates from a monetary policy strategy or any 
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reference monetary policy rules established under 
this subsection. 
‘‘(c) TESTIMONY
AND REPORTS
OF
THE CHAIR-
MAN.—The Chairman shall, concurrent with each semi-an-
nual hearing required under section 2B, submit a report 
to the Committee on Banking, Housing, and Urban Af-
fairs of the Senate and the Committee on Banking and 
Financial Services of the House of Representatives, con-
taining— 
‘‘(1) a statement as to whether the monetary 
policy strategy established under subsection (b)(1) 
qualitatively differs from any of the reference mone-
tary policy rules required under subsection (b)(2) 
and, if applicable, a full and non-technical expla-
nation of any such difference; 
‘‘(2) a statement as to whether the Committee’s 
conduct of monetary policy since the previous report 
quantitatively differs from any reference monetary 
policy rule and, if applicable, a full and non-tech-
nical explanation of any such differences; and 
‘‘(3) a description of— 
‘‘(A) the circumstances under which the 
Committee’s monetary policy strategy may be 
amended from year to year; and 
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‘‘(B) a full and non-technical explanation 
of any such actual amendment.’’. 
Æ 
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