New Rules for Removing Federal Reserve Chairman
This act introduces new rules allowing the President to remove the Chairman of the Federal Reserve if interest rates significantly deviate from specific economic benchmarks. This could impact economic stability and decisions regarding your savings or loans, as monetary policy might become more susceptible to changes. Citizens will gain more transparency in the removal process, but it could also introduce uncertainty about the central bank's future actions.
Key points
The President can remove the Federal Reserve Chairman if the Federal funds target rate deviates by more than 200 basis points from the average of two economic benchmarks for two consecutive quarters.
These benchmarks include the Implicit Price Deflator for Personal Consumption Expenditures, the difference in Treasury bond yields, and the difference in unemployment estimates.
The President must publicly justify the removal, and Congress will hold hearings, increasing transparency in the process.
Introduced
Citizen Poll