[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2410 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2410

   To limit the total assets of Federal reserve banks, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2023

  Mr. Scott of Florida introduced the following bill; which was read 
  twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
   To limit the total assets of Federal reserve banks, 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 ``Right-size the Federal Reserve 
Act''.

SEC. 2. LIMITATION ON TOTAL ASSETS AND INTEREST PAYMENTS.

    (a) In General.--The Federal Reserve Act is amended--
            (1) in section 2B (12 U.S.C. 225b), by adding at the end 
        the following:
    ``(d) Additional Annual Report.--The Board and each Federal reserve 
bank shall submit to Congress, on an annual basis, a report on how many 
foreign-owned banks and financial institutions the Board or the Federal 
reserve banks have paid on interest for reserves or in the lending 
facilities of the Board.'';
            (2) in section 19(b) (12 U.S.C. 461(b))--
                    (A) in paragraph (2)(A), by striking ``solely for 
                the purpose'' and all that follows through the period 
                at the end and inserting ``, which shall be not lower 
                than the reserve requirements in effect on March 25, 
                2020.''; and
                    (B) in paragraph (12)(A), by inserting ``that are 
                not in excess of the reserves required to be maintained 
                under this subsection'' after ``institution''; and
            (3) by adding at the end the following:

``SEC. 33. LIMITATION ON TOTAL ASSETS.

    ``(a) In General.--The total aggregate assets of all Federal 
reserve banks shall be in an amount that is not more than 10 percent of 
the gross domestic product of the United States.
    ``(b) Effective Date.--Subsection (a) shall take effect on the date 
that is 10 years after the date of enactment of this section.''.
    (b) Elimination of Facility.--The Board of Governors of the Federal 
Reserve System--
            (1) shall, not later than 1 year after the date of 
        enactment of this Act, eliminate the Overnight Reserve 
        Repurchase Facility; and
            (2) may not create another facility similar to the facility 
        eliminated under paragraph (1).
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, and every year thereafter, the Board of Governors of the 
Federal Reserve System shall submit to Congress a report on the plan 
and timeline of the Board for meeting the requirements under this 
section and the amendments made by this section.
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