I 112th CONGRESS 1st Session H. R. 3428 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.

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)..