Bill > HR4975

This bill, known as the "TOO LATE Act", establishes a new procedure for removing the Chairman of the Federal Reserve Board of Governors based on monetary policy performance. Specifically, the President can remove the Chairman if, for two consecutive quarters, the Federal funds target rate (the upper bound of the interest rate range set by the Federal Reserve) deviates more than 200 basis points (2 percentage points) from the average of three economic benchmarks: the Implicit Price Deflator for Personal Consumption Expenditures, the difference between 5-year Treasury bond and Treasury Inflation-Protected Security yields, and the difference between the Board's unemployment estimates and Congressional Budget Office projections. If such a deviation occurs, the President must issue a public statement to Congress explaining the reasons for removal, including specific benchmark data and a discussion of monetary policy conduct. Within 30 days of this statement, the House Financial Services Committee and Senate Banking Committee must hold hearings to analyze the justification for removing the Federal Reserve Chairman. This bill represents a significant potential check on the Federal Reserve's monetary policy independence by introducing a formal mechanism for presidential intervention based on specific economic performance metrics.

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https://www.congress.gov/bill/119th-congress/house-bill/4975/all-info