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 ‘‘Independence from Cred-
it Policy Act of 2017’’. 
SEC. 2. INDEPENDENCE FROM CREDIT POLICY. 
(a) RETURNING TO A MONETARY POLICY BALANCE 
SHEET.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act— 
(A) the Board of Governors of the Federal 
Reserve System shall transfer to the Department 
of the Treasury all covered assets that are neither 
gold stock, Treasury currency, nor direct obliga-
tions of the United States, foreign central banks, 
or the International Monetary Fund; and 
(B) the Secretary of the Treasury shall 
transfer to the Federal reserve banks direct obli-
gations of the United States of equivalent market 
value to such covered assets. 
(2) COVERED
ASSETS
DEFINED.—In this sub-
section, the term ‘‘covered assets’’ means all assets— 
(A) purchased through open-market oper-
ations by the Federal reserve banks; or 
VerDate Sep 11 2014 
20:31 Jan 02, 2019
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6203
E:\BILLS\H4278.RH
H4278
pamtmann on DSKBFK8HB2PROD with BILLS
(B) acquired through transactions under the 
following sections of the Federal Reserve Act (12 
U.S.C. 221 et seq.): 
(i) Section 10A before the date of the 
enactment of this Act. 
(ii) Section 10B. 
(iii) Section 13. 
(iv) Section 13A. 
(v) Section 24. 
(b) OPEN MARKET ASSET PURCHASES.—Section 14(b) 
(12 U.S.C. 355) of the Federal Reserve Act (relating to 
‘‘Purchase and sale of obligations of United States, States, 
counties, etc.’’) is amended to read as follows: 
‘‘(b) To buy and sell in the open market, at home or 
abroad, under the direction and regulations of the Federal 
Open Market Committee, gold stock, Treasury currency, or 
direct obligations of the United States, foreign central 
banks, or the International Monetary Fund. Nothing in this 
subsection shall be construed to limit advances under sec-
tion 10B, or discount loans under sections 13, 13A, or 24.’’. 
(c) MAINTAINING
A MONETARY POLICY BALANCE 
SHEET.— 
(1) ASSETS
ACQUIRED
UNDER
EMERGENCY 
LENDING.—Section 13(3) of the Federal Reserve Act 
VerDate Sep 11 2014 
20:31 Jan 02, 2019
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H4278.RH
H4278
pamtmann on DSKBFK8HB2PROD with BILLS
(12 U.S.C. 343(3)) is amended by inserting after sub-
paragraph (E) following new subparagraph: 
‘‘(F) Not later than 1 year after a Federal 
reserve bank acquires any assets under this para-
graph that are neither gold nor direct obligations 
of the United States, foreign central banks, or the 
International Monetary Fund— 
‘‘(i) the Board shall transfer such as-
sets of the Federal reserve bank to the De-
partment of the Treasury; and 
‘‘(ii) the Secretary of the Treasury 
shall transfer to the Federal reserve banks 
direct obligations of the United States of 
equivalent market value to the assets de-
scribed in clause (i).’’. 
(2) REPEAL OF AUTHORITY TO PROVIDE EMER-
GENCY ADVANCES TO GROUPS OF MEMBER BANKS.— 
Section 10A of the Federal Reserve Act (12 U.S.C. 
347a) is repealed. 
(3) ASSETS ACQUIRED THROUGH ADVANCES TO 
MEMBER
BANKS.—The second undesignated para-
graph of subsection (a) of section 10B of the Federal 
Reserve Act (12 U.S.C. 347b(a)) is amended— 
(A) by inserting ‘‘not’’ before ‘‘secured by 
mortgage loans’’; and 
VerDate Sep 11 2014 
20:31 Jan 02, 2019
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H4278.RH
H4278
pamtmann on DSKBFK8HB2PROD with BILLS
(B) by striking ‘‘lowest discount rate’’ and 
inserting ‘‘highest discount rate’’. 
VerDate Sep 11 2014 
20:31 Jan 02, 2019
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6203
E:\BILLS\H4278.RH
H4278
pamtmann on DSKBFK8HB2PROD with BILLS
VerDate Sep 11 2014 
20:31 Jan 02, 2019
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6203
E:\BILLS\H4278.RH
H4278
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 Gov-
ernors of the Federal Reserve System remain 
independent from the credit policy of the United 
States, and for other purposes. 
JANUARY 2, 2019 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Sep 11 2014 
20:31 Jan 02, 2019
Jkt 089200
PO 00000
Frm 00008
Fmt 6651
Sfmt 6651
E:\BILLS\H4278.RH
H4278
pamtmann on DSKBFK8HB2PROD with BILLS