Title: Federal Reserve Reform Act of 2018
Policy area: Economics and Public Finance

Summary:
Federal Reserve Reform Act of 2018
This bill revises provisions related to the authority of the Federal Reserve Board to set monetary policy. Among other things, the bill

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6741 Introduced in House (IH)]

<DOC>






115th CONGRESS
  2d Session
                                H. R. 6741

     To amend the Federal Reserve Act to increase monetary policy 
  transparency and accountability and to make reforms to the Federal 
                Reserve System, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 7, 2018

  Mr. Barr (for himself, Mr. Lucas, Mr. Mooney of West Virginia, Ms. 
  Tenney, and Mr. Davidson) introduced the following bill; which was 
referred to the Committee on Financial Services, and in addition to the 
 Committee on Rules, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
     To amend the Federal Reserve Act to increase monetary policy 
  transparency and accountability and to make reforms to the Federal 
                Reserve System, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Reserve 
Reform Act of 2018''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Monetary policy transparency and accountability.
Sec. 3. Independence from credit policy.
Sec. 4. Congressional accountability for emergency lending programs.
Sec. 5. Interest rates on balances maintained at a Federal Reserve Bank 
                            by depository institutions established by 
                            Federal Open Market Committee.
Sec. 6. Membership of Federal Open Market Committee.
Sec. 7. Bringing the non-monetary policy related functions of the Board 
                            of Governors of the Federal Reserve System 
                            into the appropriations process.
Sec. 8. Amendment to appointment of presidents of Federal Reserve 
                            Banks.
Sec. 9. Federal Open Market Committee blackout period.
Sec. 10. Salaries, financial disclosures, and office staff of the Board 
                            of Governors of the Federal Reserve System.
Sec. 11. Vice Chairman for Supervision report requirement.
Sec. 12. Removal of dual mandate.

SEC. 2. MONETARY POLICY TRANSPARENCY AND ACCOUNTABILITY.

    Section 12A of the Federal Reserve Act (12 U.S.C. 263) is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsections:
    ``(b) Policy Transparency.--
            ``(1) Monetary policy strategy.--
                    ``(A) In general.--The Committee shall annually 
                establish exactly 1 monetary policy strategy, which 
                shall serve as a non-technical public communication of 
                the Committee's consensus expectation for the conduct 
                of monetary policy during that calendar year.
                    ``(B) Requirements.--Each monetary policy strategy 
                of the Committee shall include the following:
                            ``(i) A plain English description of how 
                        the Committee would adjust each of the 
                        following monetary policy instruments in 
                        reaction to changes in a small and well-defined 
                        set of publicly available economic indicators:
                                    ``(I) Short-term interest rate 
                                targets established by the Committee.
                                    ``(II) Open-market operations 
                                authorized under section 14.
                                    ``(III) Earnings on balances 
                                maintained at a Federal reserve bank by 
                                or on behalf of a depository 
                                institution under section 19(b)(12).
                            ``(ii) An identification of 1 monetary 
                        policy instrument from the list in clause (i) 
                        that the Committee expects to use as the 
                        primary instrument for implementing the 
                        monetary policy strategy described under 
                        subparagraph (A).
            ``(2) Reference monetary policy rules.--In addition to the 
        monetary policy strategy required under paragraph (1), the 
        Committee shall annually adopt at least 1 and not more than 3 
        reference monetary policy rules, each of which shall 
        mathematically express how the primary monetary policy 
        instrument identified under paragraph (1)(B)(ii) reacts to 
        changes in a small and well-defined set of publicly available 
        economic indicators.
            ``(3) Deviations.--Nothing in this subsection shall be 
        construed to prevent the Committee from setting short-term 
        interest rate targets, conducting open-market operations, or 
        paying earnings on balances pursuant to section 19(b)(12) in a 
        manner that deviates from a monetary policy strategy or any 
        reference monetary policy rules established under this 
        subsection.
    ``(c) Testimony and Reports of the Chairman.--The Chairman shall, 
concurrent with each semi-annual hearing required under section 2B, 
submit a report to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the House of 
Representatives, containing--
            ``(1) a statement as to whether the monetary policy 
        strategy established under subsection (b)(1) qualitatively 
        differs from any of the reference monetary policy rules 
        required under subsection (b)(2) and, if applicable, a full and 
        non-technical explanation of any such difference;
            ``(2) a statement as to whether the Committee's conduct of 
        monetary policy since the previous report quantitatively 
        differs from any reference monetary policy rule and, if 
        applicable, a full and non-technical explanation of any such 
        differences; and
            ``(3) a description of--
                    ``(A) the circumstances under which the Committee's 
                monetary policy strategy may be amended from year to 
                year; and
                    ``(B) a full and non-technical explanation of any 
                such actual amendment.''.

SEC. 3. 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 obligations 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 obligations of the 
                United States of equivalent market value to such 
                covered assets.
            (2) Covered assets defined.--In this subsection, the term 
        ``covered assets'' means all assets--
                    (A) purchased through open-market operations by the 
                Federal reserve banks; or
                    (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 
section 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 (12 U.S.C. 343(3)) is amended by 
        adding at the end the following new subparagraph:
                    ``(F) Not later than 1 year after a Federal reserve 
                bank acquires any assets under this paragraph 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 assets 
                        of the Federal reserve bank to the Department 
                        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 described in clause 
                        (i).''.
            (2) Repeal of authority to provide emergency advances to 
        groups of member banks.--Section 10A of the Federal Reserve Act 
        is repealed.
            (3) Assets acquired through advances to member banks.--The 
        second undesignated paragraph of subsection (a) of section 10B 
        of the Federal Reserve Act is amended--
                    (A) by inserting ``not'' before ``secured by 
                mortgage loans''; and
                    (B) by striking ``lowest discount rate'' and 
                inserting ``highest discount rate''.

SEC. 4. CONGRESSIONAL ACCOUNTABILITY FOR EMERGENCY LENDING PROGRAMS.

    Section 13(3) of the Federal Reserve Act (12 U.S.C. 343(3)), as 
amended by section 3, is further amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``that pose a threat to the 
                financial stability of the United States'' after 
                ``unusual and exigent circumstances''; and
                    (B) by striking ``the affirmative vote of not less 
                than five members'' and inserting ``the prior approval 
                of the Secretary of the Treasury and not less than \2/
                3\ of the members of the Federal Open Market 
                Committee'';
            (2) in subparagraph (B)--
                    (A) in clause (i), by inserting at the end the 
                following: ``Federal reserve banks may not accept 
                equity securities issued by the recipient of any loan 
                or other financial assistance under this paragraph as 
                collateral. Not later than 6 months after the date of 
                the enactment of this sentence, the Board shall, by 
                rule, establish--
                                    ``(I) a method for determining the 
                                sufficiency of the collateral required 
                                under this paragraph;
                                    ``(II) acceptable classes of 
                                collateral;
                                    ``(III) the amount of any discount 
                                on the value of the collateral that the 
                                Federal reserve banks will apply for 
                                purposes of calculating the sufficiency 
                                of collateral under this paragraph; and
                                    ``(IV) a method for obtaining 
                                independent appraisals of the value of 
                                collateral the Federal reserve banks 
                                receive.'';
                    (B) in clause (ii)--
                            (i) by striking the second sentence; and
                            (ii) by inserting after the first sentence 
                        the following: ``A borrower shall not be 
                        eligible to borrow from any emergency lending 
                        program or facility unless the Board and all 
                        Federal banking regulators with jurisdiction 
                        over the borrower certify that, at the time the 
                        borrower initially borrows under the program or 
                        facility, the borrower is not insolvent.''; and
                    (C) by striking clause (iv);
            (3) by inserting ``financial institution'' before 
        ``participant'' each place such term appears;
            (4) in subparagraph (D)(i), by inserting ``financial 
        institution'' before ``participants''; and
            (5) by adding at the end the following new subparagraphs:
                    ``(G) Joint resolution of approval.--
                            ``(i) In general.--A program or facility 
                        created under subparagraph (A) shall terminate 
                        on the date that is 30 calendar days after the 
                        date on which Congress receives a report 
                        described in subparagraph (C) unless there is 
                        enacted into law a joint resolution approving 
                        the program or facility not later than 30 
                        calendar days after the date on which the 
                        report is received. Any loan offered through 
                        the program or facility that is outstanding as 
                        of the date on which the program or facility is 
                        terminated shall be repaid in full not later 
                        than 30 calendar days after the date on which 
                        the program or facility is terminated.
                            ``(ii) Contents of joint resolution.--For 
                        the purpose of this subparagraph, the term 
                        `joint resolution' means only a joint 
                        resolution--
                                    ``(I) that is introduced not later 
                                than 3 calendar days after the date on 
                                which the report described in 
                                subparagraph (C) is received by 
                                Congress;
                                    ``(II) that does not have a 
                                preamble;
                                    ``(III) the title of which is as 
                                follows: `Joint resolution relating to 
                                the approval of a program or facility 
                                created by the Board of Governors of 
                                the Federal Reserve System'; and
                                    ``(IV) the matter after the 
                                resolving clause of which is as 
                                follows: `That Congress approves the 
                                program or facility created by the 
                                Board of Governors of the Federal 
                                Reserve System on __________.' (The 
                                blank space being appropriately filled 
                                in).
                            ``(iii) Fast track consideration in house 
                        of representatives.--
                                    ``(I) Reconvening.--Upon receipt of 
                                a report under subparagraph (C), the 
                                Speaker, if the House would otherwise 
                                be adjourned, shall notify the Members 
                                of the House that, pursuant to this 
                                subparagraph, the House shall convene 
                                not later than the second calendar day 
                                after receipt of such report.
                                    ``(II) Reporting and discharge.--
                                Any committee of the House of 
                                Representatives to which a joint 
                                resolution is referred shall report it 
                                to the House not later than 5 calendar 
                                days after the date of receipt of the 
                                report described in subparagraph (C). 
                                If a committee fails to report the 
                                joint resolution within that period, 
                                the committee shall be discharged from 
                                further consideration of the joint 
                                resolution and the joint resolution 
                                shall be referred to the appropriate 
                                calendar.
                                    ``(III) Proceeding to 
                                consideration.--After each committee 
                                authorized to consider a joint 
                                resolution reports it to the House or 
                                has been discharged from its 
                                consideration, it shall be in order, 
                                not later than the sixth day after 
                                Congress receives the report described 
                                in subparagraph (C), to move to proceed 
                                to consider the joint resolution in the 
                                House. All points of order against the 
                                motion are waived. Such a motion shall 
                                not be in order after the House has 
                                disposed of a motion to proceed on the 
                                joint resolution. The previous question 
                                shall be considered as ordered on the 
                                motion to its adoption without 
                                intervening motion. The motion shall 
                                not be debatable. A motion to 
                                reconsider the vote by which the motion 
                                is disposed of shall not be in order.
                                    ``(IV) Consideration.--The joint 
                                resolution shall be considered as read. 
                                All points of order against the joint 
                                resolution and against its 
                                consideration are waived. The previous 
                                question shall be considered as ordered 
                                on the joint resolution to its passage 
                                without intervening motion except 2 
                                hours of debate equally divided and 
                                controlled by the proponent and an 
                                opponent. A motion to reconsider the 
                                vote on passage of the joint resolution 
                                shall not be in order.
                            ``(iv) Fast track consideration in 
                        senate.--
                                    ``(I) Reconvening.--Upon receipt of 
                                a report under subparagraph (C), if the 
                                Senate has adjourned or recessed for 
                                more than 2 days, the majority leader 
                                of the Senate, after consultation with 
                                the minority leader of the Senate, 
                                shall notify the Members of the Senate 
                                that, pursuant to this subparagraph, 
                                the Senate shall convene not later than 
                                the second calendar day after receipt 
                                of such report.
                                    ``(II) Placement on calendar.--Upon 
                                introduction in the Senate, the joint 
                                resolution shall be placed immediately 
                                on the calendar.
                                    ``(III) Floor consideration.--
                                            ``(aa) In general.--
                                        Notwithstanding Rule XXII of 
                                        the Standing Rules of the 
                                        Senate, it is in order at any 
                                        time during the period 
                                        beginning on the fourth day 
                                        after the date on which 
                                        Congress receives a report 
                                        described in subparagraph (C) 
                                        and ending on the sixth day 
                                        after the date on which 
                                        Congress receives the report 
                                        (even though a previous motion 
                                        to the same effect has been 
                                        disagreed to) to move to 
                                        proceed to the consideration of 
                                        the joint resolution, and all 
                                        points of order against the 
                                        joint resolution (and against 
                                        consideration of the joint 
                                        resolution) are waived. The 
                                        motion to proceed is not 
                                        debatable. The motion is not 
                                        subject to a motion to 
                                        postpone. A motion to 
                                        reconsider the vote by which 
                                        the motion is agreed to or 
                                        disagreed to shall not be in 
                                        order. If a motion to proceed 
                                        to the consideration of the 
                                        resolution is agreed to, the 
                                        joint resolution shall remain 
                                        the unfinished business until 
                                        disposed of.
                                            ``(bb) Debate.--Debate on 
                                        the joint resolution, and on 
                                        all debatable motions and 
                                        appeals in connection 
                                        therewith, shall be limited to 
                                        not more than 10 hours, which 
                                        shall be divided equally 
                                        between the majority and 
                                        minority leaders or their 
                                        designees. A motion further to 
                                        limit debate is in order and 
                                        not debatable. An amendment to, 
                                        or a motion to postpone, or a 
                                        motion to proceed to the 
                                        consideration of other 
                                        business, or a motion to 
                                        recommit the joint resolution 
                                        is not in order.
                                            ``(cc) Vote on passage.--
                                        The vote on passage shall occur 
                                        immediately following the 
                                        conclusion of the debate on a 
                                        joint resolution, and a single 
                                        quorum call at the conclusion 
                                        of the debate if requested in 
                                        accordance with the rules of 
                                        the Senate.
                                            ``(dd) Rulings of the chair 
                                        on procedure.--Appeals from the 
                                        decisions of the Chair relating 
                                        to the application of the rules 
                                        of the Senate, as the case may 
                                        be, to the procedure relating 
                                        to a joint resolution shall be 
                                        decided without debate.
                            ``(v) Coordination with action by other 
                        house.--
                                    ``(I) In general.--If, before the 
                                passage by one House of a joint 
                                resolution of that House, that House 
                                receives from the other House a joint 
                                resolution, then the following 
                                procedures shall apply:
                                            ``(aa) The joint resolution 
                                        of the other House shall not be 
                                        referred to a committee.
                                            ``(bb) With respect to a 
                                        joint resolution of the House 
                                        receiving the resolution--

                                                    ``(AA) the 
                                                procedure in that House 
                                                shall be the same as if 
                                                no joint resolution had 
                                                been received from the 
                                                other House; but

                                                    ``(BB) the vote on 
                                                passage shall be on the 
                                                joint resolution of the 
                                                other House.

                                    ``(II) Treatment of joint 
                                resolution of other house.--If one 
                                House fails to introduce or consider a 
                                joint resolution under this section, 
                                the joint resolution of the other House 
                                shall be entitled to expedited floor 
                                procedures under this section.
                                    ``(III) Consideration after 
                                passage.--If, following passage of the 
                                joint resolution in the Senate, the 
                                Senate then receives the companion 
                                measure from the House of 
                                Representatives, the companion measure 
                                shall not be debatable.
                                    ``(IV) Vetoes.--If the President 
                                vetoes the joint resolution, the period 
                                beginning on the date the President 
                                vetoes the joint resolution and ending 
                                on the date the Congress receives the 
                                veto message with respect to the joint 
                                resolution shall be disregarded in 
                                computing the 30-calendar day period 
                                described in clause (i) and debate on a 
                                veto message in the Senate under this 
                                section shall be 1 hour equally divided 
                                between the majority and minority 
                                leaders or their designees.
                                    ``(V) Rules of house of 
                                representatives and senate.--This 
                                subparagraph is enacted by Congress--
                                            ``(aa) as an exercise of 
                                        the rulemaking power of the 
                                        Senate and House of 
                                        Representatives, respectively, 
                                        and as such it is deemed a part 
                                        of the rules of each House, 
                                        respectively, but applicable 
                                        only with respect to the 
                                        procedure to be followed in 
                                        that House in the case of a 
                                        joint resolution, and 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 extent 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 financial 
                        assistance.
                            ``(ii) Minimum interest rate defined.--In 
                        this subparagraph, the term `minimum interest 
                        rate' shall mean the sum of--
                                    ``(I) the average of the secondary 
                                discount rate of all Federal reserve 
                                banks over the most recent 90-day 
                                period; 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 recent 90-day 
                                period.
                    ``(I) Financial institution participant defined.--
                For purposes of this paragraph, the term `financial 
                institution participant'--
                            ``(i) means a company that is predominantly 
                        engaged in financial activities (as defined in 
                        section 102(a) of the Financial Stability Act 
                        of 2010 (12 U.S.C. 5311(a))); and
                            ``(ii) does not include an agency described 
                        in subparagraph (W) of section 5312(a)(2) of 
                        title 31, United States Code, or an entity 
                        controlled or sponsored by such an agency.''.

SEC. 5. INTEREST RATES ON BALANCES MAINTAINED AT A FEDERAL RESERVE BANK 
              BY DEPOSITORY INSTITUTIONS 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 inserting ``established by the 
Federal Open Market Committee'' after ``rate or rates''.

SEC. 6. MEMBERSHIP OF FEDERAL OPEN MARKET COMMITTEE.

    Section 12A(a) of the Federal Reserve Act (12 U.S.C. 263(a)) is 
amended--
            (1) in the first sentence, by striking ``five 
        representatives of the Federal Reserve banks to be selected as 
        hereinafter provided'' and inserting ``one representative from 
        each of the Federal Reserve banks'';
            (2) in the second sentence, by striking ``and, beginning'' 
        and all that follows through ``San Francisco''; 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 amended by inserting 
after section 11B the following:

``SEC. 11C. APPROPRIATIONS REQUIREMENT FOR NON-MONETARY POLICY RELATED 
              ADMINISTRATIVE COSTS.

    ``(a) Appropriations Requirement.--
            ``(1) Recovery of costs of annual appropriation.--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 Congress. 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 pursuant 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 offsetting 
                collections to the account providing appropriations 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.
            ``(3) Limitation.--This subsection shall only apply to the 
        non-monetary policy related administrative costs of the Board 
        of Governors of the Federal Reserve System.
    ``(b) Definitions.--For purposes of this section:
            ``(1) Monetary policy.--The term `monetary policy' means a 
        strategy for producing a generally acceptable exchange medium 
        that supports the productive employment of economic resources 
        by reliably serving as both a unit of account and store of 
        value.
            ``(2) Non-monetary policy related administrative costs.--
        The term `non-monetary policy related administrative costs' 
        means administrative costs not related to the conduct of 
        monetary policy, and includes--
                    ``(A) direct operating expenses for supervising and 
                regulating entities supervised and regulated by the 
                Board of Governors of the Federal Reserve System, 
                including conducting examinations, conducting stress 
                tests, communicating with the entities regarding 
                supervisory matters and laws, and regulations;
                    ``(B) operating expenses for activities integral to 
                carrying out supervisory and regulatory 
                responsibilities, such as training staff in the 
                supervisory function, research and analysis functions 
                including library subscription services, and collecting 
                and processing regulatory reports filed by supervised 
                institutions; and
                    ``(C) support, overhead, and pension expenses 
                related to the items described under subparagraphs (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 PERIOD.

    Section 12A of the Federal Reserve Act (12 U.S.C. 263), as amended 
by section 2, is further amended by adding 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 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 purposes 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 prohibit the Chairman of the 
        Board of Governors of the 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 subsections:
    ``(u) Prohibited and Restricted Financial Interests and 
Transactions.--The members and employees 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 Reserve System shall make publicly 
available, on the website of the Board of Governors, a searchable 
database that contains the names of all members, officers, and 
employees of the Board of Governors who receive an annual salary in 
excess of the annual rate of basic pay for GS-15 of the General 
Schedule, and--
            ``(1) the yearly salary information for such individuals, 
        along with any nonsalary compensation received 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 member 
and the salaries of such individuals set by such member. A member may 
employ additional individuals as determined necessary by the Board of 
Governors.''.

SEC. 11. VICE CHAIRMAN FOR SUPERVISION REPORT REQUIREMENT.

    Paragraph (12) of section 10 of the Federal Reserve Act (12 U.S.C. 
247(b)) is amended--
            (1) by redesignating such paragraph as paragraph (11); and
            (2) in such paragraph, by adding at the end the following: 
        ``In each such appearance, the Vice Chairman for Supervision 
        shall provide written testimony that includes the status of all 
        pending and anticipated rulemakings that are being made by the 
        Board of Governors of the Federal Reserve System. If, at the 
        time of any appearance described in this paragraph, the 
        position of Vice Chairman for Supervision is vacant, the Vice 
        Chairman for the Board of Governors of the Federal Reserve 
        System (who has the responsibility to serve in the absence of 
        the Chairman) shall appear instead and provide the required 
        written testimony. If, at the time of any appearance described 
        in this paragraph, both Vice Chairman positions are vacant, the 
        Chairman of the Board of Governors of the Federal Reserve 
        System shall appear instead and provide the required written 
        testimony.''.

SEC. 12. REMOVAL OF DUAL MANDATE.

    Section 2A of the Federal Reserve Act (12 U.S.C. 225a) is amended 
by striking ``maximum employment, stable prices,'' and inserting 
``stable prices''.
                                 <all>