Kevin Brady, Texas Republican and vice-chair of the Joint Economic Committee of Congress, will introduce a bill to reform the Fed later this week. The bill, called the “Sound Dollar Act”, would among other things:
- Give the Fed a single mandate for inflation and require it to monitor gold and other asset prices in defining price stability.
- Give a permanent FOMC vote to all twelve regional Fed presidents (versus four in rotation — plus the New York Fed president — at present).
- Require publication of Fed meeting transcripts after three years (versus the current five).
- Require the Fed to report on the impact of its policies on the dollar.
- Limit the Fed’s ability to hold assets other than Treasuries and repos outside of a board-declared emergency.