Federal Reserve Accountability for Major Expenditures Act; FRAME Act
Summary
The Federal Reserve Accountability for Major Expenditures Act (FRAME Act) aims to increase congressional oversight of the Federal Reserve's capital expenditures. Specifically, it requires congressional approval for any capital expenditure exceeding $100 million. This is achieved through a joint resolution of disapproval, subject to expedited procedures in both the House and Senate.
Expected Effects
The FRAME Act would give Congress greater control over the Federal Reserve's spending. This could lead to more scrutiny of the Fed's operations and potentially influence its investment decisions. The Act also establishes a fast-track process for congressional review of these expenditures.
Potential Benefits
- Increased transparency and accountability of the Federal Reserve.
- Greater congressional oversight of large capital expenditures.
- Potential for more fiscally responsible spending by the Federal Reserve.
- A check on the independence of the Federal Reserve, ensuring alignment with public interests.
- Expedited procedures for congressional review, preventing delays in decision-making.
Most Benefited Areas:
Potential Disadvantages
- Potential for political interference in the Federal Reserve's operations.
- Risk of delaying or blocking necessary capital expenditures.
- Increased administrative burden on both the Federal Reserve and Congress.
- Possible chilling effect on the Federal Reserve's willingness to invest in important projects.
- Potential for gridlock if Congress is unable to reach a consensus on disapproving expenditures.
Constitutional Alignment
The FRAME Act aligns with Article I, Section 8 of the US Constitution, which grants Congress the power to coin money and regulate the value thereof. By requiring congressional approval for large capital expenditures, the Act reinforces Congress's role in overseeing the nation's financial system. However, some may argue that it infringes upon the Federal Reserve's independence, which is implicitly supported by the Federal Reserve Act.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).