Right-size the Federal Reserve Act

Scott, Rick

Right-size the Federal Reserve ActThis bill places restrictions on the Federal Reserve System, including by placing a cap on specified assets, eliminating a Federal Reserve Board facility, and setting forth conditions on bank reserve requirements.The bill places a cap on the total aggregate assets of all Federal Reserve banks. Specifically, these assets must not amount to more than 10% of the&nbsp;U.S. gross domestic product. This cap takes effect 10 years after the bill’s enactment.The bill also eliminates the Overnight Reverse Repurchase Facility, a board facility that conducts monetary policy through security repurchase agreements.The board’s depository institution reserves requirements must not be lower than the reserve requirements as of March 25, 2020.&nbsp;The board and each Federal Reserve bank must annually report on certain interest payments to foreign-owned banks and financial institutions.&nbsp; &nbsp;