# Right-Size the Federal Reserve Act

This bill would reduce the size and scope of the Federal Reserve, the central bank that manages the nation's money supply and oversees the banking system. Specifically, it would require the Federal Reserve to shrink its balance sheet—the total assets it holds—back down to pre-2008 financial crisis levels. The Fed dramatically expanded what it owns during the 2008 crisis and again during the COVID-19 pandemic, buying up hundreds of billions of dollars in government bonds and other financial assets to inject money into the economy and keep interest rates low.

The bill would force the Fed to sell off or let mature a significant portion of these holdings, essentially removing money from the financial system. Supporters argue this would reduce inflation and prevent the Fed from having too much power over the economy. Critics worry it could disrupt financial markets, make borrowing more expensive, and potentially trigger economic problems if done too quickly. The practical effect would likely be higher interest rates for mortgages, car loans, credit cards, and other consumer borrowing, since the Fed's large holdings currently help keep rates down.

This bill represents a fundamental disagreement about how much power the Federal Reserve should have and how actively it should manage the economy. If passed, it would represent a major shift in how the Fed operates and could have ripple effects throughout the entire financial system, affecting everything from job creation to inflation to the cost of everyday borrowing for regular Americans.