Right-size the Federal Reserve Act

Bill: 118-s-2410
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>Right-size the Federal Reserve Act</strong></p><p>This bill places restrictions on the Federal Reserve System, including by placing a cap on specified assets, eliminating a Federal Reserve Board facility, and setting forth conditions on bank reserve requirements.</p><p>The bill places a cap on the total aggregate assets of all Federal Reserve banks. Specifically, these assets must not amount to more than 10% of the&nbsp;U.S. gross domestic product. This cap takes effect 10 years after the bill’s enactment.</p><p>The bill also eliminates the Overnight Reverse Repurchase Facility, a board facility that conducts monetary policy through security repurchase agreements.</p><p>The board’s depository institution reserves requirements must not be lower than the reserve requirements as of March 25, 2020.&nbsp;The board and each Federal Reserve bank must annually report on certain interest payments to foreign-owned banks and financial institutions.&nbsp; &nbsp;</p><!--tinycomments|2.1|data:application/json;base64,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-->

tv_txt: II 118th CONGRESS 1st Session S. 2410 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 the total assets of Federal reserve banks, and for other purposes.

1. Short title This Act may be cited as the Right-size the Federal Reserve Act . 2. Limitation on total assets and interest payments (a) In general 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 report The Board and each Federal reserve bank shall submit to Congress, on an annual basis, a report on how many foreign-owned banks and financial institutions the Board or the Federal reserve banks have paid on interest for reserves or in the lending facilities of the Board. ; (2) in section 19(b) ( 12 U.S.C. 461(b) )— (A) in paragraph (2)(A), by striking solely for the purpose and all that follows through the period at the end and inserting , which shall be not lower than the reserve requirements in effect on March 25, 2020. ; and (B) in paragraph (12)(A), by inserting that are not in excess of the reserves required to be maintained under this subsection after institution ; and (3) by adding at the end the following: 33. Limitation on total assets (a) In general The total aggregate assets of all Federal reserve banks shall be in an amount that is not more than 10 percent of the gross domestic product of the United States. (b) Effective date Subsection (a) shall take effect on the date that is 10 years after the date of enactment of this section. . (b) Elimination of facility The Board of Governors of the Federal Reserve System— (1) shall, not later than 1 year after the date of enactment of this Act, eliminate the Overnight Reserve Repurchase Facility; and (2) may not create another facility similar to the facility eliminated under paragraph (1). (c) Report Not later than 1 year after the date of enactment of this Act, and every year thereafter, the Board of Governors of the Federal Reserve System shall submit to Congress a report on the plan and timeline of the Board for meeting the requirements under this section and the amendments made by this section.