[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3428 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3428

  To amend the Federal Reserve Act to replace the Federal Open Market 
     Committee members representing the Federal Reserve banks with 
 additional members appointed by the President, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 15, 2011

  Mr. Frank of Massachusetts introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Reserve Act to replace the Federal Open Market 
     Committee members representing the Federal Reserve banks with 
 additional members appointed by the President, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. COMPOSITION OF FEDERAL OPEN MARKET COMMITTEE.

    (a) In General.--Section 12A(a) of the Federal Reserve Act is 
amended to read as follows:
    ``(a) Establishment.--
            ``(1) In general.--There is hereby created a Federal Open 
        Market Committee (hereinafter referred to as the `Committee'), 
        which shall consist of--
                    ``(A) the members of the Board of Governors of the 
                Federal Reserve System; and
                    ``(B) 5 additional members appointed by the 
                President, by and with the advice and consent of the 
                Senate (hereinafter referred to as `additional 
                members').
            ``(2) Selection, requirements, and authorities of 
        additional members.--The additional members shall--
                    ``(A) be selected by the President to give due 
                regard to a fair representation of the financial, 
                agricultural, industrial, commercial, consumer, and 
                labor interests, and geographical diversity, of the 
                United States;
                    ``(B) be selected in a manner so as to ensure that 
                no more than 1 additional member is appointed from any 
                particular Federal Reserve district;
                    ``(C) only be removed by the President for cause;
                    ``(D) initially be appointed for terms of 3, 4, 5, 
                6, and 7 years, respectively, and appointed for 
                staggered 7-year terms thereafter;
                    ``(E) upon the expiration of each of their terms of 
                office, continue to serve until their successor is 
                appointed and confirmed;
                    ``(F) with respect to an additional member 
                appointed to fill the remainder of an unexpired term 
                and subject to subparagraph (E), only serve until the 
                end of such term;
                    ``(G) devote their entire time to the business of 
                the Committee;
                    ``(H) each receive actual necessary traveling 
                expenses;
                    ``(I) each be provided with office space in both--
                            ``(i) a building used by the Board of 
                        Governors of the Federal Reserve System in 
                        Washington, District of Columbia; and
                            ``(ii) a building used by the Federal 
                        Reserve bank of the Federal Reserve district 
                        from which the additional member was selected; 
                        and
                    ``(J) each have the authority to make use of--
                            ``(i) the staff of the Board of Governors 
                        of the Federal Reserve System; and
                            ``(ii) the staff of the Federal Reserve 
                        bank of the Federal Reserve district from which 
                        the additional member was selected.
            ``(3) Meetings.--The meetings of said Committee shall be 
        held at Washington, District of Columbia, at least four times 
        each year upon the call of the chairman of the Board of 
        Governors of the Federal Reserve System or at the request of 
        any three members of the Committee.
            ``(4) Use of new york research staff.--Each member of the 
        Committee shall have the authority to make use of the research 
        staff of the Federal Reserve bank of New York.''.
    (b) Pay of Additional Members.--Section 5314 of title 5, United 
States Code, is amended by adding at the end the following:
        ``Additional members of the Federal Open Market Committee 
        (5).''.
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