[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10530 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 10530
To amend the Federal Reserve Act to modify the goals of the Board of
Governors of the Federal Reserve System, to eliminate class A and B
directors from the board of directors of each Federal reserve bank, and
to establish certain reporting requirements for the Board of Governors,
and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
December 19, 2024
Mr. Khanna (for himself, Ms. Wilson of Florida, Ms. Norton, Ms. Clarke
of New York, Ms. Schakowsky, Ms. Tlaib, and Mr. Jackson of Illinois)
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 modify the goals of the Board of
Governors of the Federal Reserve System, to eliminate class A and B
directors from the board of directors of each Federal reserve bank, and
to establish certain reporting requirements for the Board of Governors,
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 ``Coretta Scott King Full Employment
Federal Reserve Act of 2024''.
SEC. 2. MODIFICATION OF THE GOALS OF THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM AND THE FEDERAL OPEN MARKET
COMMITTEE.
Section 2A of the Federal Reserve Act (12 U.S.C. 225a) is amended--
(1) by striking ``The Board of Governors'' and inserting
``(a) in general.--The Board of Governors shall'';
(2) by striking ``stable prices'' and inserting ``a stable
rate of inflation''; and
(3) by inserting at the end the following:
``(b) General Policy: Congressional Review.--In this section, the
term `maximum employment' means a labor market in the United States in
which--
``(1) job seekers can find work;
``(2) involuntary part-time work is at a minimum;
``(3) median wages are rising with worker productivity; and
``(4) disparities in rates of unemployment and pay between
and among racial, gender, urban, rural, and other demographic
groups have reached their lowest practicable level.''.
SEC. 3. PROMOTING A DIVERSE, REPRESENTATIVE FEDERAL RESERVE.
Section 4 of the Federal Reserve Act (38 Stat. 251) is amended--
(1) in the provision designated ``Fifth'' of the fourth
undesignated paragraph, by inserting after ``employees.'' the
following: ``In making the appointment of a president, the bank
shall interview at least one individual reflective of gender
diversity, one individual reflective of racial or ethnic
diversity, and one individual who has experience in scholarship
or advocacy on behalf of the interests of consumers, labor, or
other sectors of society whose interests are distinct from
those of the banking and financial services sector. Not later
than January 1 of each year, the bank shall submit a report
describing the applicant pool demographics for the proceeding
fiscal year to the Committee on Financial Services of the House
of Representatives, the Committee on Banking, Housing, and
Urban Affairs of the Senate, and the Office of the Inspector
General for the Board of Governors of the Federal Reserve
System and the Consumer Financial Protection Bureau.'';
(2) in the ninth undesignated paragraph, by striking ``,
and divided into three classes, designated as classes A, B, and
C'';
(3) by striking the tenth, eleventh, fourteenth, sixteenth,
seventeenth, and eighteenth undesignated paragraphs;
(4) in the twelfth undesignated paragraph--
(A) by striking ``Class C shall consist of three
members who shall be designated by the Board of
Governors of the Federal Reserve System.'' and
inserting ``Members of the board of directors shall be
designated by the Board of Governors of the Federal
Reserve System.''; and
(B) by striking ``class C'';
(5) in the fifteenth undesignated paragraph, by striking
``of class C'';
(6) in the twentieth undesignated paragraph--
(A) by striking ``Class C directors'' and inserting
``Directors'';
(B) by striking ``of class C''; and
(C) by striking ``the third class C director'' and
inserting ``another director of the Board, designated
by the Board of Governors of the Federal Reserve
System,''; and
(7) in the twenty-fourth undesignated paragraph--
(A) by striking ``of classes A, B and C,
respectively,'';
(B) by striking ``one'' the first place it appears
and inserting ``three'';
(C) by striking ``of each class whose term'' the
second place it appears and inserting ``whose terms'';
(D) by striking ``one whose term'' the first place
it appears and inserting ``three whose terms'';
(E) by striking ``one whose term'' the second place
it appears and inserting ``three whose terms''; and
(F) by striking ``in the several classes of'' and
inserting ``on the board of''.
SEC. 4. STUDIES.
Section 2B(b) of the Federal Reserve Act (12 U.S.C. 225b(b)) is
amended--
(1) by striking ``The Board shall'' and inserting ``(1) in
general.--The Board shall''; and
(2) by inserting at the end the following:
``(2) Inflation and Employment Figures.--In each report required
under paragraph (1), the Board shall include--
``(A) the results of a study of the past estimates of the
Board on longer-run unemployment rates, including--
``(i) an assessment of the accuracy of such
estimates;
``(ii) an assessment of the effect of such
estimates on decisions of the Board; and
``(iii) recommendations of the Board to improve the
accuracy of such estimates;
``(B) a study of the inflation target, including--
``(i) information on each measurement of inflation
used to calculate such target;
``(ii) information on each period during which the
Board determines that any such measurement is above or
below such target; and
``(iii) a summary of the arguments for and against
setting the inflation target at 2 percent inflation;
``(C) an estimate of the impact that the projected pathway
for the Federal funds rate is likely to have on labor market
conditions and on a variety of demographic groups, including
demographic groups that experience unemployment rates above the
national rate;
``(D) an assessment of whether alternative monetary policy
approaches would affect such conditions and on such groups; and
``(E) a description of the confidence interval on each
projection that the Federal Reserve System, or any participant
in the Federal Open Market Committee, provides for the longer-
run rate of unemployment.''.
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