it supersedes other rules only to 
the extent that it is inconsistent 
with such rules; and 
‘‘(bb) with full recognition of 
the constitutional right of either 
House to change the rules (so far 
as relating to the procedure of 
that House) at any time, in the 
same manner, and to the same ex-
tent as in the case of any other 
rule of that House. 
‘‘(H) PENALTY RATE.— 
‘‘(i) IN GENERAL.—Not later than 6 
months after the date of enactment of this 
subparagraph, the Board shall, with respect 
to a recipient of any loan or other financial 
assistance under this paragraph, establish 
by rule a minimum interest rate on the 
principal amount of any loan or other fi-
nancial assistance. 
‘‘(ii) MINIMUM
INTEREST
RATE
DE-
FINED.—In this subparagraph, the term 
‘minimum interest rate’ shall mean the sum 
of— 
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‘‘(I) the average of the secondary 
discount rate of all Federal reserve 
banks over the most recent 90-day pe-
riod; and 
‘‘(II) the average of the difference 
between a distressed corporate bond 
yield index (as defined by rule of the 
Board) and a bond yield index of debt 
issued by the United States (as defined 
by rule of the Board) over the most re-
cent 90-day period. 
‘‘(I) FINANCIAL INSTITUTION PARTICIPANT 
DEFINED.—For purposes of this paragraph, the 
term ‘financial institution participant’— 
‘‘(i) means a company that is pre-
dominantly engaged in financial activities 
(as defined in section 102(a) of the Finan-
cial Stability Act of 2010 (12 U.S.C. 
5311(a))); and 
‘‘(ii) does not include an agency de-
scribed in subparagraph (W) of section 
5312(a)(2) of title 31, United States Code, 
or an entity controlled or sponsored by such 
an agency.’’. 
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SEC. 5. INTEREST RATES ON BALANCES MAINTAINED AT A 
FEDERAL RESERVE BANK BY DEPOSITORY IN-
STITUTIONS 
ESTABLISHED 
BY 
FEDERAL 
OPEN MARKET COMMITTEE. 
Subparagraph (A) of section 19(b)(12) of the Federal 
Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by in-
serting ‘‘established by the Federal Open Market Com-
mittee’’ after ‘‘rate or rates’’. 
SEC. 6. MEMBERSHIP OF FEDERAL OPEN MARKET COM-
MITTEE. 
Section 12A(a) of the Federal Reserve Act (12 U.S.C. 
263(a)) is amended— 
(1) in the first sentence, by striking ‘‘five rep-
resentatives of the Federal Reserve banks to be selected 
as hereinafter provided’’ and inserting ‘‘one represent-
ative from each of the Federal Reserve banks’’; 
(2) in the second sentence, by striking ‘‘and, be-
ginning’’ and all that follows through ‘‘San Fran-
cisco’’; and 
(3) by striking the third and fourth sentences. 
SEC. 7. BRINGING THE NON-MONETARY POLICY RELATED 
FUNCTIONS OF THE BOARD OF GOVERNORS 
OF THE FEDERAL RESERVE SYSTEM INTO 
THE APPROPRIATIONS PROCESS. 
(a) IN GENERAL.—The Federal Reserve Act is amend-
ed by inserting after section 11B the following: 
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‘‘SEC. 11C. APPROPRIATIONS REQUIREMENT FOR NON-MON-
ETARY POLICY RELATED ADMINISTRATIVE 
COSTS. 
‘‘(a) APPROPRIATIONS REQUIREMENT.— 
‘‘(1) RECOVERY OF COSTS OF ANNUAL APPRO-
PRIATION.—The Board of Governors of the Federal 
Reserve System and the Federal reserve banks shall 
collect assessments and other fees, as provided under 
this Act, that are designed to recover the costs to the 
Government of the annual appropriation to the Board 
of Governors of the Federal Reserve System by Con-
gress. The Board of Governors of the Federal Reserve 
System and the Federal reserve banks may only incur 
obligations or allow and pay expenses with respect to 
non-monetary policy related administrative costs pur-
suant to an appropriations Act. 
‘‘(2) OFFSETTING
COLLECTIONS.—Assessments 
and other fees described under paragraph (1) for any 
fiscal year— 
‘‘(A) shall be deposited and credited as off-
setting collections to the account providing ap-
propriations to the Board of Governors of the 
Federal Reserve System; and 
‘‘(B) shall not be collected for any fiscal 
year except to the extent provided in advance in 
appropriation Acts. 
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‘‘(3) LIMITATION.—This subsection shall only 
apply to the non-monetary policy related administra-
tive costs of the Board of Governors of the Federal Re-
serve System. 
‘‘(b) DEFINITIONS.—For purposes of this section: 
‘‘(1) MONETARY POLICY.—The term ‘monetary 
policy’ means a strategy for producing a generally ac-
ceptable exchange medium that supports the produc-
tive employment of economic resources by reliably 
serving as both a unit of account and store of value. 
‘‘(2) NON-MONETARY POLICY RELATED ADMINIS-
TRATIVE COSTS.—The term ‘non-monetary policy re-
lated administrative costs’ means administrative costs 
not related to the conduct of monetary policy, and in-
cludes— 
‘‘(A) direct operating expenses for super-
vising and regulating entities supervised and 
regulated by the Board of Governors of the Fed-
eral Reserve System, including conducting ex-
aminations, conducting stress tests, commu-
nicating with the entities regarding supervisory 
matters and laws, and regulations; 
‘‘(B) operating expenses for activities inte-
gral to carrying out supervisory and regulatory 
responsibilities, such as training staff in the su-
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pervisory function, research and analysis func-
tions including library subscription services, and 
collecting and processing regulatory reports filed 
by supervised institutions; and 
‘‘(C) support, overhead, and pension ex-
penses related to the items described under sub-
paragraphs (A) and (B).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to expenses paid and fees 
collected on or after October 1, 2018. 
SEC. 8. AMENDMENT TO APPOINTMENT OF PRESIDENTS OF 
FEDERAL RESERVE BANKS. 
The fifth subparagraph of the fourth undesignated 
paragraph of section 4 of the Federal Reserve Act (12 
U.S.C. 341) is amended by striking ‘‘Class B and Class C 
directors’’ and inserting ‘‘board of directors’’. 
SEC. 9. FEDERAL OPEN MARKET COMMITTEE BLACKOUT PE-
RIOD. 
Section 12A of the Federal Reserve Act (12 U.S.C. 
263), as amended by section 2, is further amended by add-
ing at the end the following new subsection: 
‘‘(f) BLACKOUT PERIOD.— 
‘‘(1) IN GENERAL.—During a blackout period, 
the only public communications that may be made by 
members and staff of the Committee with respect to 
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macroeconomic or financial developments or about 
current or prospective monetary policy issues are the 
following: 
‘‘(A) The dissemination of published data, 
surveys, and reports that have been cleared for 
publication by the Board of Governors of the 
Federal Reserve System. 
‘‘(B) Answers to technical questions specific 
to a data release. 
‘‘(C) Communications with respect to the 
prudential or supervisory functions of the Board 
of Governors. 
‘‘(2) BLACKOUT
PERIOD
DEFINED.—For pur-
poses of this subsection, and with respect to a meeting 
of the Committee described under subsection (a), the 
term ‘blackout period’ means the time period that— 
‘‘(A) begins immediately after midnight on 
the day that is one week prior to the date on 
which such meeting takes place; and 
‘‘(B) ends at midnight on the day after the 
date on which such meeting takes place. 
‘‘(3) EXEMPTION FOR CHAIRMAN OF THE BOARD 
OF GOVERNORS.—Nothing in this section shall pro-
hibit the Chairman of the Board of Governors of the 
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Federal Reserve System from participating in or 
issuing public communications.’’. 
SEC. 10. SALARIES, FINANCIAL DISCLOSURES, AND OFFICE 
STAFF OF THE BOARD OF GOVERNORS OF 
THE FEDERAL RESERVE SYSTEM. 
(a) IN GENERAL.—Section 11 of the Federal Reserve 
Act (12 U.S.C. 248) is amended— 
(1) by redesignating the second subsection (s) 
(relating to ‘‘Assessments, Fees, and Other Charges for 
Certain Companies’’) as subsection (t); and 
(2) by adding at the end the following new sub-
sections: 
‘‘(u) PROHIBITED AND RESTRICTED FINANCIAL IN-
TERESTS AND TRANSACTIONS.—The members and employ-
ees of the Board of Governors of the Federal Reserve System 
shall be subject to the provisions under section 4401.102 of 
title 5, Code of Federal Regulations, to the same extent as 
such provisions apply to an employee of the Securities and 
Exchange Commission. 
‘‘(v) DISCLOSURE OF STAFF SALARIES AND FINANCIAL 
INFORMATION.—The Board of Governors of the Federal Re-
serve System shall make publicly available, on the website 
of the Board of Governors, a searchable database that con-
tains the names of all members, officers, and employees of 
the Board of Governors who receive an annual salary in 
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excess of the annual rate of basic pay for GS–15 of the Gen-
eral Schedule, and— 
‘‘(1) the yearly salary information for such indi-
viduals, along with any nonsalary compensation re-
ceived by such individuals; and 
‘‘(2) any financial disclosures required to be 
made by such individuals.’’. 
(b) OFFICE STAFF FOR EACH MEMBER OF THE BOARD 
OF GOVERNORS.—Subsection (l) of section 11 of the Federal 
Reserve Act (12 U.S.C. 248) is amended by adding at the 
end the following: ‘‘Each member of the Board of Governors 
of the Federal Reserve System may employ, at a minimum, 
2 individuals, with such individuals selected by such mem-
ber and the salaries of such individuals set by such member. 
A member may employ additional individuals as deter-
mined necessary by the Board of Governors.’’. 
SEC. 11. VICE CHAIRMAN FOR SUPERVISION REPORT RE-
QUIREMENT. 
Paragraph (12) of section 10 of the Federal Reserve 
Act (12 U.S.C. 247b) is amended— 
(1) by redesignating such paragraph as para-
graph (11); and 
(2) in such paragraph— 
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(A) by striking ‘‘shall appear’’ and insert-
ing ‘‘shall provide written testimony and ap-
pear’’; and 
(B) by adding at the end the following: ‘‘If, 
at the time of any appearance described in this 
paragraph, the position of Vice Chairman for 
Supervision is vacant, the Chairman or their 
designee shall appear instead and provide the re-
quired written testimony.’’. 
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Union Calendar No. 883 
115TH CONGRESS 
2D SESSION 
H. R. 6741 
[Report No. 115–1116, Part I] 
A BILL 
To amend the Federal Reserve Act to increase 
monetary policy transparency and accountability 
and to make reforms to the Federal Reserve Sys-
tem, and for other purposes. 
JANUARY 2, 2019 
Reported from the Committee on Financial Services with 
an amendment 
JANUARY 2, 2019 
Committee on Rules discharged; committed to the Com-
mittee of the Whole House on the State of the Union 
and ordered to be printed 
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