S. 1648

119 S1648 IS: Right-size the Federal Reserve Act
 U.S. Senate
 2025-05-07
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 1648  IN THE SENATE OF THE UNITED STATES   May 7, 2025   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.
1.
Short title
This Act may be cited as the   Right-size the Federal Reserve Act  .
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:
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.