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Strengthening Federal Reserve System Accountability Act of 2023
12/15/2023, 4:07 PM
Summary of Bill S 1663
First, the bill requires the Federal Reserve to provide more detailed reports to Congress on its monetary policy decisions and the reasoning behind those decisions. This will help ensure that the Federal Reserve is held accountable for its actions and that Congress has a better understanding of the factors influencing monetary policy.
Second, the bill calls for greater oversight of the Federal Reserve's regulatory and supervisory functions. This includes requiring the Federal Reserve to provide regular updates to Congress on its regulatory activities and to undergo periodic reviews by an independent auditor. Additionally, the bill seeks to enhance the diversity and independence of the Federal Reserve Board of Governors. It mandates that the Board of Governors include members with diverse backgrounds and expertise, and it limits the ability of the President to remove Board members without cause. Overall, the Strengthening Federal Reserve System Accountability Act of 2023 aims to improve the transparency and accountability of the Federal Reserve System, ensuring that it operates in the best interests of the American people.
Congressional Summary of S 1663
Strengthening Federal Reserve System Accountability Act of 2023
This bill revises director qualifications and elections for the boards of federal reserve banks and makes other changes to transparency and ethics requirements. (There are 12 federal reserve banks each overseen by a 9-member board of directors. Each board is comprised of 3 directors from 3 statutorily defined classes: A, B, and C.)
The bill limits the eligibility for Class A directors to those who represent banks with less than $50 billion in assets. Further, Class B directors must be selected by Board of Governors of the Federal Reserve System, rather than by the banks as under current law. Individuals who served as bank executives, directors, or employees in the preceding five years are prohibited from serving as Class B directors. No director is allowed to serve more than 2 full terms. The bill requires the board to publish specified details regarding director selection and candidacy.
The bill also prohibits bank directors from participating in certain bank supervision activities, including the selection of supervisory bank officers.
Finally, the bill requires directors, presidents, and vice presidents to comply with specified ethics rules regarding investment and trading activity.
