H.R.3173 - Federal Reserve Financial Accountability and Transparency Act (119th Congress)
Summary
H.R.3173, the Federal Reserve Financial Accountability and Transparency Act, aims to amend the Federal Reserve Act by adding more detailed reporting requirements to the Board of Governors' annual report. These requirements include disclosing annual expenditures and full-time equivalent employees for each Federal Reserve Bank across various categories. The bill also mandates reporting on the most important areas of research and expenditures dedicated to proposed or finalized rules, guidance, and policy statements.
Expected Effects
If enacted, this bill would increase transparency regarding the Federal Reserve System's operations and expenditures. It would provide Congress and the public with more detailed information about how the Federal Reserve Banks allocate resources. The changes would take effect two years after enactment.
Potential Benefits
- Increased transparency in the Federal Reserve's operations.
- Enhanced public understanding of the Fed's activities and resource allocation.
- Improved Congressional oversight of the Federal Reserve System.
- Greater accountability for the Fed's expenditures and research priorities.
- Potential for more informed policy debates related to monetary policy and financial regulation.
Most Benefited Areas:
Potential Disadvantages
- Increased administrative burden on the Federal Reserve System to compile and report the required data.
- Potential for political pressure on the Federal Reserve based on the disclosed information.
- Risk of misinterpretation or misuse of the data by the public or policymakers.
- Possible delays in the implementation of policies due to increased scrutiny.
- The two-year delay in the effective date could postpone the benefits of increased transparency.
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to coin money and regulate the value thereof. Increased transparency and reporting requirements can aid Congress in fulfilling its oversight responsibilities related to monetary policy. The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).