WASHINGTON, D.C. – Today, Senator Rick Scott reintroduced a legislative package to bring accountability to the Federal Reserve and its leadership and end its out-of-control monetary policies that have failed the American people. This includes the Regular Order for Investments (ROI) of the Federal Reserve Act to end the Fed’s bad practices and force the Fed to consider the impact of its decisions on hard-working American families; the Right Size the Federal Reserve Act to ensure an unwinding of the Fed’s massive balance sheet, which currently sits at a staggering $6.7 trillion, by mandating that it remain at or below 10% of U.S. GDP; and the Rein in the Federal Reserve Act, with Senator Cynthia Lummis, to establish more accountability and strict Congressional oversight of the Federal Reserve.

These bills build on Senator Scott’s bipartisan legislation that would require a presidentially-appointed and Senate-confirmed Inspector General to be added to the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. Senator Scott continues to work to right-size the Fed and make sure it’s working for the best interests of the American people and with accountability for recent failures. Read more on his efforts HERE.

Senator Rick Scott said, “The Federal Reserve is out of control and has clearly lost track of its mission to provide stability for the American people. Under Chair Powell, we have seen zero accountability, a culture of corruption and questionable ethics, and a complete lack of guardrails to the Fed’s policies that have left the American people dealing with the consequences. It’s time to put an end to the insanity and instability at the Fed with my comprehensive legislative package that reins in the Federal Reserve, better protects taxpayer money, and makes sure the Federal Reserve is truly accountable to Congress and the American people. We finally have a President who is making the government accountable and work better for Americans; it’s time to bring this effort to the Federal Reserve.”

The Rein in the Federal Reserve Act, with Senator Cynthia Lummis:

• Interjects much-needed scrutiny and accountability of the Federal Reserve’s actions by establishing a statutory process for actual oversight of the Federal Reserve:

• Mandates that, whenever the Federal Reserve begins a quantitative easing or tightening program or any emergency facility falling under Section 13.3 of the Federal Reserve Act, the Federal Reserve Board of Governors must submit a quarterly report to Congress, the public, and both the Senate Banking Committee and the House Ways and Means Committee regarding any new program or emergency spending facility that has been initiated.
• Requires that, after one calendar year from the beginning of the emergency spending program, the Federal Reserve must receive new authorization from Congress in order to continue its emergency spending program.
• Allows Congressional Resolutions of Disapproval (CRAs) for any standing or emergency Federal Reserve facility.

The Regular Order for Investments (ROI) of the Federal Reserve Act:

• Ends the corrupted financial practices of the Federal Reserve by:

• Requiring the Federal Reserve System to comply with Generally Accepted Accounting Practices (GAAP) like every other bank and business operating in the United States.
• Requiring the Federal Reserve to use ‘mark-to-market’ valuations for its statutorily required financial reporting of assets and liabilities.

• Returns the Federal Reserve to its traditional asset purchases and stops the mission creep of the Federal Reserve to further intervene in different capital markets by:

• Prohibiting the Fed from purchasing any Mortgage-Backed Securities (MBS) beginning at the date of enactment.
• Require the Fed to purchase only short-term Treasuries (up to 3-year maturities) beginning at the date of enactment of this bill.
• Explicitly prohibit the Fed from directly or indirectly holding common stock.

The Right-Size the Federal Reserve Act:

• Brings sanity back to the Fed’s balance sheet by:

• Capping the size of the Federal Reserve System’s balance sheet at 10% of US GDP.
• Requiring the Federal Reserve System to submit to Congress annually a report on its plan and timeline to meet the provisions of this bill.

• Addresses perverse incentives at the Federal Reserve by:

• Requiring that the Federal Reserve’s Reserve Requirements for depository institutions shall not be lower than those in effect prior to March 26, 2020.
• Prohibiting the Federal Reserve from paying interest on excess bank reserves, allowing the Fed to only pay interest to banks on its required reserves, and
• Requiring an annual report from the Federal Reserve on how many foreign-owned banks and financial institutions it has paid on interest for reserves or in its facilities and operations since 2000.

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