House Financial Services Committee Passes Federal Reserve Accountability Bill

The House Financial Services Committee passed the Federal Reserve Accountability and Transparency Act, which increases transparency and accountability at the Federal Reserve.

The Federal Reserve Accountability and Transparency Act (H.R. 5018) is legislation developed as part of the Committee's Federal Reserve Centennial Oversight Project launched at the end of last year. Under the bill, the Board of Governors of the Federal Reserve System ("FRB") would be required to adopt a more predictable rules-based monetary policy. The bill also requires the FRB to disclose to the public whatever rules-based approach it chooses to adopt. Additionally, H.R. 5018 requires the FRB to conduct a cost-benefit analysis in order to ensure that the benefits of proposed regulations outweigh the costs to the economy.

See: House Financial Services Committee Press Release; H.R. 5018. Related news: House Financial Services Committee Holds Meeting to Consider Markups of Bills Relating to Banks and Bank Regulators(July 29, 2014); House Financial Services Committee Schedules Markup of Bills Relating to Banking and Bank Regulators (with Lofchie Comment) (July 25, 2014).