I 
115TH CONGRESS 
2D SESSION 
H. R. 7095 
To amend the Federal Reserve Act to modify the goals of the Board of 
Governors of the Federal Reserve System, to eliminate class A and 
B directors from the board of directors of each Federal reserve bank, 
and to establish certain reporting requirements for the Board of Gov-
ernors, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 26, 2018 
Mr. KHANNA (for himself, Mr. HASTINGS, Ms. CLARKE of New York, Ms. 
WILSON of Florida, Mr. POCAN, Ms. NORTON, Mr. ELLISON, Mr. PAYNE, 
and Ms. SCHAKOWSKY) introduced the following bill; which was referred 
to the Committee on Financial Services 
A BILL 
To amend the Federal Reserve Act to modify the goals 
of the Board of Governors of the Federal Reserve Sys-
tem, to eliminate class A and B directors from the board 
of directors of each Federal reserve bank, and to estab-
lish certain reporting requirements for the Board of Gov-
ernors, and for other purposes. 
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 ‘‘Coretta Scott King 
Full Employment Federal Reserve Act of 2018’’. 
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SEC. 2. MODIFICATION OF THE GOALS OF THE BOARD OF 
GOVERNORS OF THE FEDERAL RESERVE SYS-
TEM AND THE FEDERAL OPEN MARKET COM-
MITTEE. 
Section 2A of the Federal Reserve Act (12 U.S.C. 
225a) is amended— 
(1) by striking ‘‘The Board of Governors’’ and 
inserting ‘‘(a) IN
GENERAL.—The Board of Gov-
ernors shall’’; 
(2) by striking ‘‘stable prices’’ and inserting ‘‘a 
stable rate of inflation’’; and 
(3) by inserting at the end the following: 
‘‘(b) GENERAL POLICY: CONGRESSIONAL REVIEW.— 
In this section, the term ‘maximum employment’ means 
a labor market in the United States in which— 
‘‘(1) job seekers can find work; 
‘‘(2) involuntary part-time work is at a min-
imum; 
‘‘(3) median wages are rising with worker pro-
ductivity; and 
‘‘(4) disparities in rates of unemployment and 
pay between and among racial, gender, urban, rural, 
and other demographic groups have reached their 
lowest practicable level.’’. 
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SEC. 3. PROMOTING A DIVERSE, REPRESENTATIVE FED-
ERAL RESERVE. 
Section 4 of the Federal Reserve Act (38 Stat. 251) 
is amended— 
(1) in the provision designated ‘‘Fifth’’ of the 
fourth undesignated paragraph, by inserting after 
‘‘employees.’’ the following: ‘‘In making the appoint-
ment of a president, the bank shall interview at least 
one individual reflective of gender diversity, one indi-
vidual reflective of racial or ethnic diversity, and one 
individual who has experience in scholarship or advo-
cacy on behalf of the interests of consumers, labor, 
or other sectors of society whose interests are dis-
tinct from those of the banking and financial serv-
ices sector. Not later than January 1 of each year, 
the bank shall submit a report describing the appli-
cant pool demographics for the proceeding fiscal 
year to the Committee on Financial Services of the 
House of Representatives, the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate, and 
the Office of the Inspector General for the Board of 
Governors of the Federal Reserve System and the 
Consumer Financial Protection Bureau.’’; 
(2) in the ninth undesignated paragraph, by 
striking ‘‘, and divided into three classes, designated 
as classes A, B, and C’’; 
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(3) by striking the tenth, eleventh, fourteenth, 
sixteenth, seventeenth, and eighteenth undesignated 
paragraphs; 
(4) in the twelfth undesignated paragraph— 
(A) by striking ‘‘Class C shall consist of 
three members who shall be designated by the 
Board of Governors of the Federal Reserve Sys-
tem.’’ and inserting ‘‘Members of the board of 
directors shall be designated by the Board of 
Governors of the Federal Reserve System.’’; 
and 
(B) by striking ‘‘class C’’; 
(5) in the fifteenth undesignated paragraph, by 
striking ‘‘of class C’’; 
(6) in the twentieth undesignated paragraph— 
(A) by striking ‘‘Class C directors’’ and in-
serting ‘‘Directors’’; 
(B) by striking ‘‘of class C’’; and 
(C) by striking ‘‘the third class C director’’ 
and inserting ‘‘another director of the Board, 
designated by the Board of Governors of the 
Federal Reserve System,’’; and 
(7) in the twenty-fourth undesignated para-
graph— 
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(A) by striking ‘‘of classes A, B and C, re-
spectively,’’; 
(B) by striking ‘‘one’’ the first place it ap-
pears and inserting ‘‘three’’; 
(C) by striking ‘‘of each class whose term’’ 
the second place it appears and inserting 
‘‘whose terms’’; 
(D) by striking ‘‘one whose term’’ the first 
place it appears and inserting ‘‘three whose 
terms’’; 
(E) by striking ‘‘one whose term’’ the sec-
ond place it appears and inserting ‘‘three whose 
terms’’; and 
(F) by striking ‘‘in the several classes of’’ 
and inserting ‘‘on the board of’’. 
SEC. 4. STUDIES. 
Section 2B(b) of the Federal Reserve Act (12 U.S.C. 
225b(b)) is amended— 
(1) by striking ‘‘The Board shall’’ and inserting 
‘‘(1) IN GENERAL.—The Board shall’’; and 
(2) by inserting at the end the following: 
‘‘(2) INFLATION AND EMPLOYMENT FIGURES.— 
In each report required under paragraph (1), the 
Board shall include— 
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‘‘(A) the results of a study of the past esti-
mates of the Board on longer-run unemploy-
ment rates, including— 
‘‘(i) an assessment of the accuracy of 
such estimates; 
‘‘(ii) an assessment of the effect of 
such estimates on decisions of the Board; 
and 
‘‘(iii) recommendations of the Board 
to improve the accuracy of such estimates; 
‘‘(B) a study of the inflation target, includ-
ing— 
‘‘(i) information on each measurement 
of inflation used to calculate such target; 
‘‘(ii) information on each period dur-
ing which the Board determines that any 
such measurement is above or below such 
target; and 
‘‘(iii) a summary of the arguments for 
and against setting the inflation target at 
2 percent inflation; 
‘‘(C) an estimate of the impact that the 
projected pathway for the Federal funds rate is 
likely to have on labor market conditions and 
on a variety of demographic groups, including 
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demographic groups that experience unemploy-
ment rates above the national rate; 
‘‘(D) an assessment of whether alternative 
monetary policy approaches would affect such 
conditions and on such groups; and 
‘‘(E) a description of the confidence inter-
val on each projection that the Federal Reserve 
System, or any participant in the Federal Open 
Market Committee, provides for the longer-run 
rate of unemployment.’’. 
Æ 
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