New Federal Reserve Investment Rules and Economic Impact Reporting.
This act changes how the Federal Reserve invests money, limiting its ability to purchase certain securities. Additionally, the Federal Reserve will be required to report annually to Congress on the impact of its actions on the middle class and the availability of small business loans, which can help citizens better understand how central bank policies affect their daily lives and financial opportunities.
Key points
The Federal Reserve will be prohibited from purchasing long-term Treasury bills (over 3 years), mortgage-backed securities, or directly holding common stock, which may impact financial market stability.
The Federal Reserve must annually report on the impact of its actions on the middle class and small business lending, increasing transparency and allowing citizens to assess monetary policy effectiveness.
The introduction of GAAP accounting standards and mark-to-market valuations for the Federal Reserve aims to enhance transparency and accuracy in financial reporting, benefiting public oversight.
Introduced
Additional Information
Print number: 119_S_1647
Sponsor: Sen. Scott, Rick [R-FL]
Process start date: 2025-05-07