S. 1648 – Right-size the Federal Reserve Act
This bill aims to limit the total assets of Federal reserve banks and for other purposes.
IN THE SENATE OF THE UNITED STATES
MAY 7, 2025
Mr. S COTT of Florida introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Right-size the Federal Reserve Act’’
SECTION 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.’’;
- (B) in paragraph (12)(A), by inserting“that are not in excess of the reserves required to be maintained under this subsection’’ after ‘‘institution’’;
- (3) by adding at the end the following:
SECTION 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.
BILL SUMMARY
- Limits the total assets of Federal reserve banks to 10% of the gross domestic product of the United States
- Eliminates the Overnight Reserve Repurchase Facility
- Requires an annual report on foreign-owned banks and financial institutions
SOURCE:
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