Bill > S1648

This bill, called the "Right-size the Federal Reserve Act," proposes several key changes to the Federal Reserve's operations and asset management. The legislation would limit the total aggregate assets of all Federal Reserve banks to no more than 10 percent of the United States' gross domestic product (GDP), with this constraint taking effect 10 years after the bill's enactment. The bill requires the Federal Reserve to submit an annual report to Congress detailing how many foreign-owned banks and financial institutions have been paid interest for reserves or through lending facilities. Additionally, the bill mandates the elimination of the Overnight Reserve Repurchase Facility within one year and prohibits the creation of similar facilities. The legislation also requires the Federal Reserve to maintain reserve requirements at least as high as those in effect on March 25, 2020, and to provide Congress with annual reports on its plan and timeline for meeting the bill's requirements. These provisions aim to constrain the Federal Reserve's financial scope and increase transparency about its operations, particularly regarding interest payments to foreign financial institutions.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/1648/all-info