H.R.3390 - Bringing the Discount Window into the 21st Century Act (119th Congress)
Summary
H.R.3390, the "Bringing the Discount Window into the 21st Century Act," mandates a comprehensive review of the Federal Reserve's discount window operations. This review aims to assess the effectiveness, technology, cybersecurity, and communication aspects of the discount window, especially during times of financial stress. The bill requires the Board of Governors to develop a remediation plan based on the review's findings and submit reports to Congress.
Expected Effects
The bill will likely lead to improvements in the Federal Reserve's discount window operations. This includes enhanced technology, better cybersecurity, and more effective communication. The public will have an opportunity to comment on the effectiveness of discount window operations and offer suggestions for improvement.
Potential Benefits
- Improved liquidity provision to financial institutions during financial stress.
- Enhanced cybersecurity measures protecting the discount window.
- More efficient communication between Federal Reserve banks.
- Increased transparency through public comment and reports to Congress.
- Modernized technology infrastructure for timely liquidity provision.
Potential Disadvantages
- The review and remediation plan may require significant resources from the Federal Reserve.
- Implementation of new technologies and procedures could be disruptive.
- Public comments may lead to conflicting recommendations, complicating the remediation plan.
- The act does not address the root causes of financial instability, only the response to it.
- Potential for confidential information to be compromised during the review process.
Constitutional Alignment
The bill appears to align with the US Constitution, specifically Article I, Section 8, which grants Congress the power to coin money and regulate the value thereof. By requiring a review and improvements to the Federal Reserve's discount window operations, Congress is exercising its oversight role in monetary policy. The bill does not appear to infringe on any individual liberties or rights guaranteed by the Constitution.
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).