Title: Coretta Scott King Full Employment Federal Reserve Act of 2018
Policy area: Finance and Financial Sector

Summary:
Coretta Scott King Full Employment Federal Reserve Act of 2018
This bill (1) revises the goals of the Federal Reserve Board and the Federal Open Market Committee, including by making a stable rate of inflation a goal for both; (2) adds reporting requirements for the board related to inflation and employment; and (3) modifies the composition of the board of directors of Federal Reserve banks.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7095 Introduced in House (IH)]

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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 Governors, 
                        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 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 Governors, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives 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''.

SEC. 2. MODIFICATION OF THE GOALS OF THE BOARD OF GOVERNORS OF THE 
              FEDERAL RESERVE SYSTEM AND THE FEDERAL OPEN MARKET 
              COMMITTEE.

    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 Governors 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 minimum;
            ``(3) median wages are rising with worker productivity; 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.''.

SEC. 3. PROMOTING A DIVERSE, REPRESENTATIVE FEDERAL 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 appointment of a president, the bank 
        shall interview at least one individual reflective of gender 
        diversity, one individual reflective of racial or ethnic 
        diversity, and one individual who has experience in scholarship 
        or advocacy on behalf of the interests of consumers, labor, or 
        other sectors of society whose interests are distinct from 
        those of the banking and financial services sector. Not later 
        than January 1 of each year, the bank shall submit a report 
        describing the applicant pool demographics for the proceeding 
        fiscal year to the Committee on Financial Services of the House 
        of Representatives, the Committee on Banking, 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'';
            (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 System.'' 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 inserting 
                ``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 paragraph--
                    (A) by striking ``of classes A, B and C, 
                respectively,'';
                    (B) by striking ``one'' the first place it appears 
                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 second 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--
                    ``(A) the results of a study of the past estimates 
                of the Board on longer-run unemployment 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, including--
                            ``(i) information on each measurement of 
                        inflation used to calculate such target;
                            ``(ii) information on each period during 
                        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 demographic groups that experience 
                unemployment 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 interval 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.''.
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