I
103D CONGRESS
1ST SESSION
H. R. 587
To modernize the Federal Reserve System and to provide for prompt
disclosure of certain decisions of the Federal Open Market Committee.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 1993
Mr. HAMILTON (for himself and Mr. OBEY) introduced the following bill;
which was referred jointly to the Committees on Banking, Finance and
Urban Affairs and Government Operations
A BILL
To modernize the Federal Reserve System and to provide
for prompt disclosure of certain decisions of the Federal
Open Market Committee.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Federal Reserve Re-
form Act of 1993’’.
SEC. 2. CONSULTATION BETWEEN FEDERAL OPEN MARKET
COMMITTEE AND THE SECRETARY OF THE
TREASURY, THE DIRECTOR OF THE OMB, AND
THE CHAIRMAN OF THE CEA.
Section 2A of the Federal Reserve Act (12 U.S.C.
225a) is amended—
(1) in the first sentence, by striking ‘‘The
Board of Governors’’ and inserting ‘‘(a) IN GEN-
ERAL.—The Board of Governors’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) CONSULTATION REQUIRED.—The Federal Open
Market Committee shall meet and consult with the Sec-
retary of the Treasury, the Director of the Office of Man-
agement and Budget, and the chairman of the Council of
Economic Advisors—
‘‘(1) during the 30-day period immediately pre-
ceding the date on which each report required under
the second sentence of subsection (a) is submitted to
the Congress by the Board of Governors; and
‘‘(2) during the 30-day period beginning on the
date which is 100 days immediately preceding the
date by which the President is required to submit
the budget under section 1105(a) of title 31, United
States Code.’’.
SEC. 3. APPOINTMENT OF THE CHAIRMAN AND VICE
CHAIRMAN.
(a) APPOINTMENT
OF
THE CHAIRMAN
AND VICE
CHAIRMAN.—The second paragraph of section 10 of the
Federal Reserve Act (12 U.S.C. 242) is amended by strik-
ing the third sentence and inserting the following: ‘‘The
President shall appoint, by and with the advice and con-
sent of the Senate, one member of the Board to serve as
Chairman. The term of such member as Chairman shall
expire on January 31 of the first calendar year beginning
after the end of the term of the President who appointed
such member as Chairman. If a member appointed as
Chairman does not complete the term of such office as
established in the preceding sentence, the President shall
appoint, by and with the advice and consent of the Senate,
another member to complete the unexpired portion of such
term. The President shall also appoint, by and with the
advice and consent of the Senate, one member of the
Board to serve as Vice Chairman for a term of 4 years.
The Chairman and the Vice Chairman may each serve
after the end of their respective terms until a successor
has taken office.’’.
(b) PERFORMANCE OF DUTIES.—The second para-
graph of section 10 of the Federal Reserve Act (12 U.S.C.
242) (as amended by subsection (a)) is amended by insert-
ing after the seventh sentence the following: ‘‘In the event
of the absence or unavailability of the Chairman, the Vice
Chairman or (in the Vice Chairman’s absence) another
member of the Board may be designated by the Chairman
to perform the duties of the office of the Chairman. If
a vacancy occurs in the office of the Chairman, the Vice
Chairman shall perform the duties of the Chairman until
a successor takes office. If a vacancy occurs in the office
of the Vice Chairman while the office of the Chairman
is vacant, the member of the Board with the most years
of service on the Board shall perform the duties of the
Chairman until a successor takes office.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall take effect on the date of enactment of this
Act.
(2) 
CURRENT
CHAIRMAN
TO
COMPLETE
TERM.—Notwithstanding the amendment made by
subsection (a), any member who holds the office of
Chairman of the Board of Governors of the Federal
Reserve System on the date of enactment of this Act
shall continue in such office during the remainder of
the term to which such member was appointed.
SEC. 4. DISCLOSURE OF INTERMEDIATE TARGETS.
Section 12A(b) of the Federal Reserve Act (12
U.S.C. 263(b)) is amended by adding at the end the fol-
lowing: ‘‘Notwithstanding any other provision of law, each
change, of any nature whatsoever, in the intermediate tar-
gets for monetary policy, which change is adopted by the
Committee, shall be disclosed to the public on the date
on which such change is adopted. For purposes of this
subsection, the term ‘intermediate targets’ means any pol-
icy objectives regarding monetary aggregates, credit ag-
gregates, prices, interest rates, or bank reserves.’’.
SEC. 5. AUDIT OF FINANCIAL TRANSACTIONS BY COMP-
TROLLER GENERAL.
Section 714(b) of title 31, United States Code (relat-
ing to audits by the Comptroller General), is amended—
(1) in paragraph (1), by inserting ‘‘or’’ at the
end;
(2) by striking paragraphs (2) and (3); and
(3) by amending paragraph (4) to read as fol-
lows:
‘‘(2) memoranda, letters, or other written com-
munications between or among members of the
Board of Governors of the Federal Reserve System
or officers or employees of the Federal Reserve Sys-
tem relating to any transaction described in para-
graph (1).’’.