[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4278 Reported in House (RH)]
<DOC>
Union Calendar No. 884
115th CONGRESS
2d Session
H. R. 4278
[Report No. 115-1117]
To ensure that the operations of the Board of Governors of the Federal
Reserve System remain independent from the credit policy of the United
States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 7, 2017
Mr. Hill introduced the following bill; which was referred to the
Committee on Financial Services
January 2, 2019
Additional sponsor: Mr. Barr
January 2, 2019
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on
November 7, 2017]
_______________________________________________________________________
A BILL
To ensure that the operations of the Board of Governors of the Federal
Reserve System remain independent from the credit policy of the United
States, 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. SHORT TITLE.
This Act may be cited as the ``Independence from Credit Policy Act
of 2017''.
SEC. 2. INDEPENDENCE FROM CREDIT POLICY.
(a) Returning to a Monetary Policy Balance Sheet.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act--
(A) the Board of Governors of the Federal Reserve
System shall transfer to the Department of the Treasury
all covered assets that are neither gold stock,
Treasury currency, nor direct obligations of the United
States, foreign central banks, or the International
Monetary Fund; and
(B) the Secretary of the Treasury shall transfer to
the Federal reserve banks direct obligations of the
United States of equivalent market value to such
covered assets.
(2) Covered assets defined.--In this subsection, the term
``covered assets'' means all assets--
(A) purchased through open-market operations by the
Federal reserve banks; or
(B) acquired through transactions under the
following sections of the Federal Reserve Act (12
U.S.C. 221 et seq.):
(i) Section 10A before the date of the
enactment of this Act.
(ii) Section 10B.
(iii) Section 13.
(iv) Section 13A.
(v) Section 24.
(b) Open Market Asset Purchases.--Section 14(b) (12 U.S.C. 355) of
the Federal Reserve Act (relating to ``Purchase and sale of obligations
of United States, States, counties, etc.'') is amended to read as
follows:
``(b) To buy and sell in the open market, at home or abroad, under
the direction and regulations of the Federal Open Market Committee,
gold stock, Treasury currency, or direct obligations of the United
States, foreign central banks, or the International Monetary Fund.
Nothing in this subsection shall be construed to limit advances under
section 10B, or discount loans under sections 13, 13A, or 24.''.
(c) Maintaining a Monetary Policy Balance Sheet.--
(1) Assets acquired under emergency lending.--Section 13(3)
of the Federal Reserve Act (12 U.S.C. 343(3)) is amended by
inserting after subparagraph (E) following new subparagraph:
``(F) Not later than 1 year after a Federal reserve
bank acquires any assets under this paragraph that are
neither gold nor direct obligations of the United
States, foreign central banks, or the International
Monetary Fund--
``(i) the Board shall transfer such assets
of the Federal reserve bank to the Department
of the Treasury; and
``(ii) the Secretary of the Treasury shall
transfer to the Federal reserve banks direct
obligations of the United States of equivalent
market value to the assets described in clause
(i).''.
(2) Repeal of authority to provide emergency advances to
groups of member banks.--Section 10A of the Federal Reserve Act
(12 U.S.C. 347a) is repealed.
(3) Assets acquired through advances to member banks.--The
second undesignated paragraph of subsection (a) of section 10B
of the Federal Reserve Act (12 U.S.C. 347b(a)) is amended--
(A) by inserting ``not'' before ``secured by
mortgage loans''; and
(B) by striking ``lowest discount rate'' and
inserting ``highest discount rate''.
Union Calendar No. 884
115th CONGRESS
2d Session
H. R. 4278
[Report No. 115-1117]
_______________________________________________________________________
A BILL
To ensure that the operations of the Board of Governors of the Federal
Reserve System remain independent from the credit policy of the United
States, and for other purposes.
_______________________________________________________________________
January 2, 2019
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed