I 
113TH CONGRESS 
1ST SESSION H. R. 1174 
To amend the Federal Reserve Act to improve the functioning and trans-
parency of the Board of Governors of the Federal Reserve System and 
the Federal Open Market Committee, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 14, 2013 
Mr. BRADY of Texas (for himself, Mrs. BACHMANN, Mr. BENTIVOLIO, Mrs. 
BLACKBURN, Mr. BONNER, Mr. BRIDENSTINE, Mr. BROUN of Georgia, 
Mr. BURGESS, Mr. COLE, Mr. CONAWAY, Mr. DUFFY, Mr. DUNCAN of 
South Carolina, Mr. FLORES, Ms. FOXX, Mr. FRANKS of Arizona, Mr. 
GOHMERT, Mr. GOWDY, Mr. GRAVES of Missouri, Mr. HUIZENGA of 
Michigan, Ms. JENKINS, Mr. JOHNSON of Ohio, Mr. SAM JOHNSON of 
Texas, Mr. JONES, Mr. JORDAN, Mr. KINGSTON, Mr. LABRADOR, Mr. 
LAMALFA, Mr. LAMBORN, Mr. LANCE, Mr. LANKFORD, Mr. LONG, Mr. 
LUCAS, Mr. LUETKEMEYER, Mrs. LUMMIS, Mr. MARCHANT, Mr. 
MCCLINTOCK, Mr. MILLER of Florida, Mr. MULLIN, Mr. MULVANEY, Mr. 
NEUGEBAUER, Mr. PEARCE, Mr. PETRI, Mr. PITTS, Mr. RIBBLE, Mr. 
ROKITA, Mr. SCALISE, Mr. SMITH of Texas, Mr. STUTZMAN, Mr. THORN-
BERRY, Mr. WALBERG, Mr. WEBER of Texas, and Mr. WOODALL) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
A BILL 
To amend the Federal Reserve Act to improve the func-
tioning and transparency of the Board of Governors of 
the Federal Reserve System and the Federal Open Mar-
ket Committee, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Sound Dollar Act of 2013’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—SINGLE MANDATE FOR PRICE STABILITY ACT 
Sec. 101. Findings. 
Sec. 102. Price stability mandate. 
TITLE II—FINANCIAL STABILITY AND MORAL HAZARD 
MITIGATION ACT 
Sec. 201. Findings. 
Sec. 202. Lender-of-last-resort policy. 
TITLE III—DIVERSIFYING THE FEDERAL OPEN MARKET 
COMMITTEE TO REFLECT A 21ST CENTURY ECONOMY ACT 
Sec. 301. Findings. 
Sec. 302. Federal Open Market Committee membership. 
TITLE IV—DEMYSTIFICATION OF MONETARY POLICY DECISIONS 
ACT 
Sec. 401. Findings. 
Sec. 402. Release of transcripts. 
TITLE V—EXCHANGE RATE RESPONSIBILITY ACT 
Sec. 501. Findings. 
Sec. 502. Report on the effect of exchange rate policy. 
Sec. 503. Renaming of Exchange Stabilization Fund. 
Sec. 504. Conversion to all-SDR Fund. 
TITLE VI—CREDIT ALLOCATION NEUTRALITY ACT 
Sec. 601. Findings. 
Sec. 602. Limitation on certain non-emergency security purchases. 
TITLE VII—BUREAU OF CONSUMER FINANCIAL PROTECTION 
FUNDING ACT 
Sec. 701. Findings. 
Sec. 702. Bureau of Consumer Financial Protection Funding. 
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TITLE I—SINGLE MANDATE FOR 
PRICE STABILITY ACT 
SEC. 101. FINDINGS. 
The Congress finds the following: 
(1) Monetary policy can only affect the level of 
employment in the short term because nonmonetary 
factors determine the level of employment in the 
long term. At best, the Federal Reserve may tempo-
rarily increase the level of employment through mon-
etary policy, but such efforts risk the possibility of 
price inflation and increased business cycle volatility 
in the future. However, the Federal Reserve can 
achieve price stability in the long term through mon-
etary policy. Price stability is desirable because both 
price inflation and price deflation damage the U.S. 
economy. Therefore, to maximize long-term economic 
growth and achieve the highest sustainable level of 
real output and employment, price stability should 
be the objective of monetary policy. 
(2) Countries whose central bank has a single 
mandate for price stability generally have a better 
record of achieving stable prices than countries 
whose central bank has a mandate that gives equal 
weight to other objectives such as maximum employ-
ment or low interest rates. 
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(3) In general, an overly accommodative mone-
tary policy inflates both asset prices and prices for 
goods and services. However, an overly accommoda-
tive monetary policy may sometimes cause a 
misallocation of capital that inflates asset prices dis-
proportionately, creating unsustainable bubbles in 
asset prices, while prices indices for goods and serv-
ices do not register significant price inflation. When 
asset bubbles burst, many investments must be liq-
uidated at considerable cost to the U.S. economy in 
terms of lower real output and employment. 
(4) Price stability cannot always be measured 
solely through price indices for goods and services 
since such indices exclude changes in asset prices. 
Therefore, the Federal Reserve should monitor (A) 
the prices of, and the expected returns from, major 
asset classes (including equities, residential real es-
tate, commercial and industrial real estate, agricul-
tural real estate, gold and other commodities, cor-
porate bonds, U.S. Government bonds, State and 
local government bonds, and other securities), (B) 
the value of the U.S. dollar relative to other cur-
rencies, and (C) the value of the United States dol-
lar relative to gold, as metrics to determine whether 
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the Federal Reserve’s monetary policy is consistent 
with long-term price stability. 
SEC. 102. PRICE STABILITY MANDATE. 
(a) IN GENERAL.—Section 2A of the Federal Reserve 
Act is amended— 
(1) by striking ‘‘maintain long run growth of 
the monetary and credit aggregates commensurate 
with the economy’s long run potential to increase 
production, so as to promote effectively the goals of 
maximum employment, stable prices, and moderate 
long-term interest rates’’ and inserting ‘‘pursue the 
goal of long-term price stability, in order to achieve 
the maximum sustainable rate of output growth and 
the maximum level of employment through time’’; 
(2) by striking ‘‘The Board of Governors’’ and 
inserting the following: 
‘‘(a) IN GENERAL.—The Board of Governors’’; and 
(3) by adding at the end the following: 
‘‘(b) PRICE STABILITY METRICS.— 
‘‘(1) IN GENERAL.—The Board of Governors of 
the Federal Reserve System and the Federal Open 
Market Committee shall— 
‘‘(A) define the term ‘long-term price sta-
bility’ for purposes of subsection (a); and 
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‘‘(B) establish metrics that the Board and 
the Committee will use to evaluate whether 
long-term price stability is being achieved. 
‘‘(2) ESTABLISHMENT OF METRICS.—In estab-
lishing the metrics described under paragraph 
(1)(B), the Board and Committee shall— 
‘‘(A) take into consideration price indices 
of goods and services; and 
‘‘(B) evaluate, on an ongoing basis— 
‘‘(i) whether such metrics are com-
prehensively reflecting price movements in 
the economy; and 
‘‘(ii) whether any price movements not 
captured by the price indices of goods and 
services 
are 
causing 
a 
significant 
misallocation of capital in the United 
States economy. 
‘‘(3) METRIC
EVALUATION.—The Board and 
Committee shall, with respect to the evaluation proc-
ess required pursuant to paragraph (2)(B), mon-
itor— 
‘‘(A) the prices of, and the expected re-
turns from, major asset classes (including equi-
ties, residential real estate, commercial and in-
dustrial real estate, agricultural real estate, 
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commodities, corporate bonds, State and local 
government bonds, and other securities) and 
the allocation of capital in financial markets 
and the broader economy; 
‘‘(B) the value of the United States dollar 
relative to other currencies; and 
‘‘(C) the value of the United States dollar 
relative to gold. 
‘‘(4) PUBLIC
DISCLOSURE; REPORT
TO
THE 
CONGRESS.—The Board and the Committee shall, 
with respect to the definition of long-term price sta-
bility and the establishment of metrics set pursuant 
to paragraph (1)— 
‘‘(A) make such definition and metrics 
available to the public on a website maintained 
by the Board or the Committee; and 
‘‘(B) each time such definition and metrics 
are set or revised, issue a report to the Con-
gress stating such definition and metrics.’’. 
(b) ADDITIONAL EVALUATIONS
AND DETERMINA-
TIONS INCLUDED
IN SEMI-ANNUAL REPORT
TO CON-
GRESS.—Section 2B(b) of the Federal Reserve Act is 
amended— 
(1) by striking ‘‘containing a discussion’’ and 
inserting the following: 
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(1) by striking ‘‘five representatives of the Fed-
eral Reserve banks to be selected as hereinafter pro-
vided.’’ and inserting ‘‘1 representative from each of 
the Federal Reserve banks.’’; and 
(2) by striking ‘‘and, beginning with the elec-
tion for the term commencing March 1, 1943, shall 
be elected annually as follows: One by the board of 
directors of the Federal Reserve Bank of New York, 
one by the boards of directors of the Federal Re-
serve Banks of Boston, Philadelphia, and Richmond, 
one by the boards of directors of the Federal Re-
serve Banks of Cleveland and Chicago, one by the 
boards of directors of the Federal Reserve Banks of 
Atlanta, Dallas, and St. Louis, and one by the 
boards of directors of the Federal Reserve Banks of 
Minneapolis, Kansas City, and San Francisco. In 
such elections each board of directors shall have one 
vote; and the details of such elections may be gov-
erned by regulations prescribed by the committee, 
which may be amended from time to time.’’ and in-
serting ‘‘and shall be elected by the board of direc-
tors of the Federal Reserve bank that they are to 
represent.’’. 
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