[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7562 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 7562

To amend the Federal Reserve Act to prohibit Federal reserve banks from 
                  paying interest on excess reserves.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 6, 2024

 Mr. Davidson introduced the following bill; which was referred to the 
                    Committee on Financial Services

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                                 A BILL


 
To amend the Federal Reserve Act to prohibit Federal reserve banks from 
                  paying interest on excess reserves.

    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 ``Prohibition on IOER Act of 2024''.

SEC. 2. PROHIBITION ON PAYMENT OF EARNINGS ON SURPLUS RESERVES.

    Section 19(b)(12) of the Federal Reserve Act (12 U.S.C. 461(b)(12)) 
is amended--
            (1) in the heading, by inserting ``required reserve'' 
        before ``balances'';
            (2) in subparagraph (A), by inserting after ``Balances'' 
        the following: ``of reserves required to be maintained by a 
        depository institution under paragraph (2) that are'';
            (3) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (4) by inserting after subparagraph (B) the following:
                    ``(C) Prohibition on other earnings.--A Federal 
                reserve bank may not pay earnings on balances 
                maintained at a Federal reserve bank by or on behalf of 
                a depository institution except as provided under this 
                paragraph.''.
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