U.S. Sen. Pat Toomey (R-PA) introduced a bill that would change the structure of the federal reserve banking system.
The Federal Reserve Accountability Act would make the presidents of Fed regional banks presidentially-appointed, Senate-confirmed positions. It will also make the Fed’s General Counsel a presidentially-appointed, Senate-confirmed position.
In addition, it would reduce the number of Fed regional banks from 12 to just five. Toomey said this would lead to more effective congressional oversight and ensure that all presidents of Fed regional banks have permanent seats on the Federal Open Market Committee (FOMC). In addition, the bill would apply the federal Anti-Lobbying Act to the Fed regional banks and the Fed Board of Governors. Finally, it would strengthen current geographic diversity requirements for Fed Governors.
“Despite their narrow and nonpartisan statutory mandates, the Fed and regional Fed banks have increasingly inserted themselves into politically-charged issues like global warming and social justice,” Toomey said. “Congress has a responsibility to ensure the Fed does not become a political actor. This legislation will further that important goal by reforming the Fed to make it more accountable to Congress and the American people.”
The bill is cosponsored by U.S. Sens. Kevin Cramer (R-ND), Mike Lee (R-UT), Cynthia Lummis (R-WY), Thom Tillis (R-NC), Bill Hagerty (R-TN), and Ted Cruz (R-TX).
On Dec. 9, Toomey and U.S. Sen. Elizabeth Warren (D-MA) introduced the Financial Regulators Transparency Act, legislation that would ensure that no financial regulator can withhold critical ethics-related information from Congress.