ROI of the Federal Reserve Act

Bill: 118-s-2409
Sponsor: full_name: Sen. Scott, Rick [R-FL]
Introduced: 2023-07-20
Policy area: Finance and Financial Sector
Latest action: action_date: 2023-07-20
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2023-07-20
action_desc: Introduced in Senate
text: <p><strong>Regular Order for Investments of the Federal Reserve Act or the ROI of the Federal Reserve Act</strong></p><p>This bill establishes requirements for Federal Reserve System investments, accounting standards, and reports.</p><p>Under the bill, Federal Reserve banks are prohibited from purchasing Treasury bills with a term of maturity of more than three years and mortgage-backed securities. Federal Reserve banks are also prohibited from holding shares of common stock that are acquired on or after the date of enactment of this bill.</p><p>The Federal Reserve Board, Federal Reserve banks, and the Federal Open Market Committee must use generally accepted accounting principles and specified valuation methods in certain filings, reports, and audits.</p><p>Finally, the board and Federal Reserve banks must annually report to Congress on (1) the status of the middle class and the impact their policies and programs have had on the middle class, and (2) the impact their actions have had on small business lending and lines of credit since 2000.</p>

tv_txt: II 118th CONGRESS 1st Session S. 2409 IN THE SENATE OF THE UNITED STATES July 20, 2023 Mr. Scott of Florida introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To limit purchases of the Federal reserve banks, to require Generally Accepted Accounting Principles standards, and for other purposes.

1. Short title This Act may be cited as the Regular Order for Investments of the Federal Reserve Act or the ROI of the Federal Reserve Act . 2. Amendments to the Federal Reserve Act The Federal Reserve Act is amended— (1) in section 2B ( 12 U.S.C. 225b ), by adding at the end the following: (d) Additional annual reports The Board and each Federal reserve bank shall submit to Congress, on an annual basis— (1) a report on the status and health of the middle class in the United States, including an analysis of how the policies and programs of the Board and the Federal reserve banks either positively or negatively impacted the growth of the middle class in the United States; and (2) a report on the impact of the actions of the Board and the Federal reserve banks on the availability of small business lending and lines of credit since 2000, specifically how the balance sheet of the Federal reserve banks, the lending facilities of the Board, and interest paid on reserves of the Federal reserve banks have impacted business credit and lending. ; (2) in section 14(b)(2) ( 12 U.S.C. 355(2) ), by inserting before the period at the end the following: , except that, notwithstanding this paragraph and paragraph (1), on and after the date of enactment of the Regular Order for Investments of the Federal Reserve Act , a Federal reserve bank may not— (A) purchase a Treasury bill with a term of maturity that is more than 3 years; (B) purchase a mortgage-backed security; or (C) directly or indirectly hold shares of common stock acquired on or after the date of enactment of the Regular Order for Investments of the Federal Reserve Act ; and (3) by adding at the end the following: 33. Accounting principles and valuations (a) Accounting principles The accounting principles applicable to any filings made by the Board, the Federal Open Market Committee, or a Federal reserve bank shall be consistent with generally accepted accounting principles. (b) Valuations The Board, the Federal Open Market Committee, and each Federal reserve bank shall use mark-to-market valuations for each financial estimate described in a report or audit under the seventh undesignated paragraph of section 10, section 11(a), or section 11B. .