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119-s-1647119th CongressWALLET

ROI of the Federal Reserve Act

Sponsored By: Senator Scott, Rick [R-FL]

Introduced

Summary

Annual public reporting on the Fed's effect on the middle class. This bill would make the Federal Reserve Board and each Federal Reserve Bank publish yearly reports on middle-class health and on small business lending since 2000, restrict certain Reserve Bank asset purchases, and require stronger accounting and valuation rules to boost transparency.

Show full summary
  • Families and households: Would force an annual report on the status and health of the middle class and an analysis of how Fed policies have helped or hurt middle-class growth.
  • Small businesses: Would require a yearly account of how the Fed's balance sheet, lending facilities, and interest paid on reserves have affected small business lending and lines of credit since 2000.
  • Fed operations and markets: Would bar Reserve Banks from buying Treasury bills with maturities over 3 years, buying mortgage-backed securities, or holding common stock acquired after enactment. It would also require generally accepted accounting principles and mark-to-market valuations in specified Fed reports and audits to increase financial transparency.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Fed must use GAAP and mark-to-market

This bill would require the Board, the FOMC, and each Federal Reserve bank to use generally accepted accounting principles (GAAP) in their filings. It would also require mark-to-market (market-value) valuations for specific financial estimates in certain reports and audits. If enacted, this would make Fed financial statements more like private companies', improving transparency for investors, auditors, and markets.

Limits Fed purchases of Treasuries and MBS

This bill would bar a Federal Reserve bank, on and after enactment, from buying Treasury bills that mature in more than 3 years. It would also bar Fed banks from buying mortgage-backed securities. It would bar Fed banks from directly or indirectly holding common stock bought on or after enactment. If enacted, these limits could change Treasury and mortgage market liquidity and affect mortgage rates and small business credit availability.

Sponsors & CoSponsors

Sponsor

Scott, Rick [R-FL]

FL • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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