Bill Summary
The "Federal Reserve Transparency Act of 2025" is a legislative proposal aimed at increasing oversight and transparency of the Federal Reserve System. The bill mandates a full audit of the Board of Governors of the Federal Reserve System and the Federal Reserve banks by the Comptroller General of the United States within 12 months of its enactment. Following the audit, a detailed report summarizing the findings and recommendations will be submitted to Congress within 90 days. This report is intended to provide Congress with insights into the operations and financial practices of the Federal Reserve, potentially leading to legislative or administrative reforms. The bill also repeals certain limitations regarding audits and makes technical amendments to existing laws to facilitate this increased transparency. Overall, the legislation seeks to hold the Federal Reserve accountable to Congress and the public, enhancing the oversight of its activities.
Possible Impacts
The "Federal Reserve Transparency Act of 2025" could have several implications for individuals and society as a whole. Here are three examples of how this legislation might affect people:
1. **Increased Public Trust in Monetary Policy**: By requiring a full audit of the Federal Reserve and its banks, the legislation could enhance transparency around monetary policy decisions. This increased clarity may help people, especially investors and consumers, better understand how monetary policy impacts interest rates, inflation, and overall economic stability. As a result, public trust in the Federal Reserve's actions could improve, potentially leading to greater confidence in the financial system.
2. **Impact on Financial Markets**: The findings of the audit, once made public, could have significant implications for financial markets. If the audit reveals issues such as mismanagement or lack of oversight, it might lead to increased volatility in markets as investors react to the news. Conversely, if the audit confirms sound practices, it could bolster investor confidence, stabilizing markets. Individuals with investments or retirement savings could be directly affected by these market fluctuations.
3. **Potential Legislative Changes**: The report generated from the audit may include recommendations for legislative or administrative actions. If the findings suggest that certain practices should be reformed or enhanced, this could lead to changes in laws or regulations governing the Federal Reserve. Individuals may experience the effects of these changes through adjustments in lending practices, interest rates on loans, or even changes in the availability of credit, which can impact personal financial decisions and economic opportunities.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 24 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 24
To require a full audit of the Board of Governors of the Federal
Reserve System and the Federal reserve banks by the Comptroller General
of the United States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2025
Mr. Massie (for himself, Mr. Biggs of Arizona, Ms. Boebert, Mr. Bost,
Mr. Brecheen, Mr. Burchett, Mr. Burlison, Mrs. Cammack, Mr. Cline, Mr.
Cloud, Mr. Collins, Mr. Crane, Mr. Crawford, Mr. Davidson, Mr. Estes,
Mr. Finstad, Mr. Fitzpatrick, Mr. Gosar, Ms. Greene of Georgia, Mr.
Griffith, Ms. Hageman, Mrs. Luna, Ms. Mace, Mr. McClintock, Mr.
McCormick, Mrs. Miller of Illinois, Mr. Moolenaar, Mr. Moore of
Alabama, Mr. Norman, Mr. Ogles, Mr. Palmer, Mr. Perry, Mr. Roy, Mr.
Rutherford, Mrs. Spartz, Mr. Steube, Ms. Tenney, Mr. Weber of Texas,
and Mr. Webster of Florida) introduced the following bill; which was
referred to the Committee on Oversight and Government Reform
_______________________________________________________________________
A BILL
To require a full audit of the Board of Governors of the Federal
Reserve System and the Federal reserve banks by the Comptroller General
of the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Reserve Transparency Act of
2025''.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM.
(a) In General.--Notwithstanding section 714 of title 31, United
States Code, or any other provision of law, the Comptroller General of
the United States shall complete an audit of the Board of Governors of
the Federal Reserve System and the Federal reserve banks under
subsection (b) of such section 714 within 12 months after the date of
the enactment of this Act.
(b) Report.--
(1) In general.--Not later than 90 days after the audit
required pursuant to subsection (a) is completed, the
Comptroller General--
(A) shall submit to Congress a report on such
audit; and
(B) shall make such report available to the Speaker
of the House, the majority and minority leaders of the
House of Representatives, the majority and minority
leaders of the Senate, the Chairman and Ranking Member
of the committee and each subcommittee of jurisdiction
in the House of Representatives and the Senate, and any
other Member of Congress who requests the report.
(2) Contents.--The report under paragraph (1) shall include
a detailed description of the findings and conclusion of the
Comptroller General with respect to the audit that is the
subject of the report, together with such recommendations for
legislative or administrative action as the Comptroller General
may determine to be appropriate.
(c) Repeal of Certain Limitations.--Subsection (b) of section 714
of title 31, United States Code, is amended by striking the second
sentence.
(d) Technical and Conforming Amendments.--
(1) In general.--Section 714 of title 31, United States
Code, is amended--
(A) in subsection (d)(3), by striking ``or (f)''
each place such term appears;
(B) in subsection (e), by striking ``the third
undesignated paragraph of section 13'' and inserting
``section 13(3)''; and
(C) by striking subsection (f).
(2) Federal reserve act.--Subsection (s) (relating to
``Federal Reserve Transparency and Release of Information'') of
section 11 of the Federal Reserve Act (12 U.S.C. 248) is
amended--
(A) in paragraph (4)(A), by striking ``has the same
meaning as in section 714(f)(1)(A) of title 31, United
States Code'' and inserting ``means a program or
facility, including any special purpose vehicle or
other entity established by or on behalf of the Board
of Governors of the Federal Reserve System or a Federal
reserve bank, authorized by the Board of Governors
under section 13(3), that is not subject to audit under
section 714(e) of title 31, United States Code'';
(B) in paragraph (6), by striking ``or in section
714(f)(3)(C) of title 31, United States Code, the
information described in paragraph (1) and information
concerning the transactions described in section 714(f)
of such title,'' and inserting ``the information
described in paragraph (1)''; and
(C) in paragraph (7), by striking ``and section
13(3)(C), section 714(f)(3)(C) of title 31, United
States Code, and'' and inserting ``, section 13(3)(C),
and''.
<all>