2 1 SEC. 2. CONSULTATION BETWEEN FEDERAL OPEN MARKET 2 3 4 5 COMMITTEE AND THE SECRETARY OF THE TREASURY, THE DIRECTOR OF THE OMB, AND THE CHAIRMAN OF THE CEA. Section 2A of the Federal Reserve Act (12 U.S.C. 6 225a) is amended 7 8 9 10 11 12 (1) by striking "The Board of Governors" and inserting "(a) IN GENERAL.-The Board of Governors"; and (2) by adding at the end the following new subsection: "(b) CONSULTATION REQUIRED.- The Federal Open 13 Market Committee shall meet and consult with the Secretary 14 of the Treasury, the Director of the Office of Management 15 and Budget, and the chairman of the Council of Economic 16 Advisors during the 30-day period— 17 18 19 20 21 22 23 "(1) ending on the date each report required under the second sentence of subsection (a) is submitted to the Congress by the Board of Governors; and "(2) beginning on the date which is 100 days before the date by which the President is required to submit the budget under section 1105(a) of title 31, United States Code.". HR 3512 IH 3 1 SEC. 3. APPOINTMENT OF THE CHAIRMAN AND VICE CHAIR 2 3 MAN. (a) APPOINTMENT OF THE CHAIRMAN AND VICE 4 CHAIRMAN.-The second paragraph of section 10 of the 5 Federal Reserve Act (12 U.S.C. 242) is amended by striking 6 out the third sentence and inserting in lieu thereof the follow7 ing: "The President shall appoint, by and with the advice and 8 consent of the Senate, one member of the Board to serve as 9 Chairman. The term of such member as Chairman shall 10 expire on January 31 of the first calendar year beginning 11 after the end of the term of the President who appointed such 12 member as Chairman. If a member appointed as Chairman 13 does not complete the term of such office as established in the 14 preceding sentence, the President shall appoint, by and with 15 the advice and consent of the Senate, another member to 16 complete the unexpired portion of such term. The President 17 shall also appoint, by and with the advice and consent of the 18 Senate, one member of the Board to serve as Vice Chairman 19 for a term of four years. The Chairman and the Vice Chair20 man may each serve after the end of their respective terms 21 until a successor has taken office.". 22 (b) PERFORMANCE OF DUTIES.-The second para23 graph of section 10 of the Federal Reserve Act (12 U.S.C. 24 242) is amended by inserting the following new sentences 25 before the sentence which prior to the amendment made by 26 subsection (a) of this section was the fourth sentence of such HR 3512 IH 4 1 paragraph: "In the event of the absence or unavailability of 2 the Chairman, the Vice Chairman or (in the Vice Chairman's 3 absence) another member of the Board may be designated by 4 the Chairman to perform the duties of the office of the Chair5 man. If a vacancy occurs in the office of the Chairman, the 6 Vice Chairman shall perform the duties of the Chairman until 7 a successor takes office. If a vacancy occurs in the office of 8 the Vice Chairman while the office of the Chairman is 9 vacant, the member of the Board with the most years of serv10 ice on the Board shall perform the duties of the Chairman 11 until a successor takes office.". 12 13 14 15 16 17 18 19 20 21 (c) EFFECTIVE DATE. (1) IN GENERAL.-Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act. (2) CURRENT CHAIRMAN TO COMPLETE TERM.Notwithstanding the amendment made by subsection (a), any member who holds the office of Chairman on the date of the enactment of this Act shall continue in such office during the remainder of the term to which such member was appointed. 22 SEC. 4. DISCLOSURE OF INTERMEDIATE TARGETS. 23 Section 12A(b) of the Federal Reserve Act (12 U.S.C. 24 263(b)) is amended by adding at the end thereof the following 25 new sentences: "Notwithstanding any other provision of law, HR 3512 IH 5 1 each change, of any nature whatsoever, in the intermediate 2 targets for monetary policy which is adopted by the Commit3 tee shall be disclosed to the public on the date on which such 4 change is adopted. For purposes of this subsection, the term 5 'intermediate targets' means any policy objectives regarding 6 monetary aggregates, credit aggregates, prices, interest 7 rates, or bank reserves.". 8 SEC. 5. AUDIT OF FINANCIAL TRANSACTIONS BY COMPTROL 9 10 LER GENERAL. Subsection (b) of section 714 of title 31, United States 11 Code (relating to audits by the Comptroller General) is 12 amended— 13 14 15 16 17 18 19 20 21 (1) by inserting "and" after the semicolon at the end of paragraph (1); (2) by striking out paragraphs (2) and (3); and "(2) memoranda, letters, or other written communications between or among members of the Board of Governors of the Federal Reserve System or officers or employees of the Federal Reserve System relating to any transaction described in paragraph (1).". 22 SEC. 6. BOARD SUBJECT TO BUDGET PROCESS. 23 Section 1105 of title 31, United States Code (relating to 24 budget contents and submission to Congress) is amended by 25 adding at the end thereof the following new subsection: HR 3512 IH 6 1 "(g) FEDERAL RESERVE BOARD BUDGET TREAT2 MENT.-The estimated receipts and proposed expenditures of 3 the Board of Governors of the Federal Reserve System and 4 all Federal Reserve Banks for the current year and the 2 5 succeeding years shall be 6 7 8 9 10 "(1) transmitted by the Board to the President before October 16 of each year; and "(2) transmitted by the President, without change, with the budget transmitted to the Congress under subsection (a).". |