,,ii #aac? ,,congress #a/ ,session ,s4 #bch ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,febru>y #g1 #bjac ,mr4 ,lee 7= himself1 ,mr4 ,cornyn1 & ,mr4 ,rubio7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to am5d ! ,f$]al ,res]ve ,act to improve ! function+ & transp>5cy ( ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,f$]al ,op5 ,m>ket ,committee1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,f$]al ,res]ve ,mod]nization ,act ( #bjac4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,title ,i--,s+le ,m&ate = ,price ,/ability ,act ,sec4 #aja4 ,f9d+s4 ,sec4 #ajb4 ,price /ability m&ate4 ,title ,,ii--,f9ancial ,/ability & ,moral ,haz>d ,mitigation ,act ,sec4 #bja4 ,f9d+s4 ,sec4 #bjb4 ,l5d]-(-la/-resort policy4 ,title ,,iii--,div]sify+ ! ,f$]al ,op5 ,m>ket ,committee to ,reflect a #ba/ ,c5tury ,economy ,act ,sec4 #cja4 ,f9d+s4 ,sec4 #cjb4 ,f$]al ,op5 ,m>ket ,committee memb]%ip4 ,title ,,iv--,demy/ification ( ,monet>y ,policy ,decisions ,act ,sec4 #dja4 ,f9d+s4 ,sec4 #djb4 ,release ( transcripts4 ,title ,v--,ex*ange ,rate ,responsibility ,act ,sec4 #eja4 ,f9d+s4 ,sec4 #ejb4 ,report on ! effect ( ex*ange rate policy4 ,sec4 #ejc4 ,r5am+ ( ,ex*ange ,/abilization ,fund4 ,sec4 #ejd4 ,conv]sion to all-,,sdr ,fund4 ,title ,,vi--,cr$it ,allocation ,neutrality ,act ,sec4 #fja4 ,f9d+s4 ,sec4 #fjb4 ,limitation on c]ta9 non-em]g5cy security pur*ases4 ,title ,,vii--,bureau ( ,consum] ,f9ancial ,protection ,fund+ ,act ,sec4 #gja4 ,f9d+s4 ,sec4 #gjb4 ,bureau ( ,consum] ,f9ancial ,protection ,fund+4 ,i ,s+le ,m&ate = ,price ,/ability ,act #aja4 ,f9d+s ,! ,congress f9ds ! foll[+3 7#a7 ,monet>y policy c only affect ! level ( employm5t 9 ! %ort t]m because nonmonet>y factors det]m9e ! level ( employm5t 9 ! long t]m4 ,at be/1 ! ,f$]al ,res]ve may tempor>ily increase ! level ( employm5t ?r\gh monet>y policy1 b su* ef=ts risk ! possibility ( price inflation & increas$ bus9ess cycle volatility 9 ! future4 ,h[ev]1 ! ,f$]al ,res]ve c a*ieve price /ability 9 ! long t]m ?r\gh monet>y policy4 ,price /ability is desirable because bo? price inflation & price deflation damage ! ,u4,s4 economy4 ,!re=e1 to maximize long-t]m economic gr[? & a*ieve ! highe/ su/a9able level ( real output & employm5t1 price /ability %\ld be ! objective ( monet>y policy4 7#b7 ,c\ntries ^: c5tral bank has a s+le m&ate = price /ability g5]ally h a bett] record ( a*iev+ /able prices ?an c\ntries ^: c5tral bank has a m&ate t gives equal weight to o!r objectives su* z maximum employm5t or l[ int]e/ rates4 7#c7 ,9 g5]al1 an ov]ly accommodative monet>y policy inflates bo? asset prices & prices = goods & s]vices4 ,h[ev]1 an ov]ly accommodative monet>y policy may sometimes cause a misallocation ( capital t inflates asset prices disproportionately1 creat+ unsu/a9able bubbles 9 asset prices1 :ile price indices = goods & s]vices d n regi/] significant price inflation4 ,:5 asset bubbles bur/1 _m inve/m5ts mu/ be liquidat$ at consid]able co/ to ! ,u4,s4 economy 9 t]ms ( l[] real output & employm5t4 7#d7 ,price /ability _c always be measur$ solely ?r\gh price indices = goods & s]vices s9ce su* indices exclude *anges 9 asset prices4 ,!re=e1 ! ,f$]al ,res]ve %\ld monitor 7,a7 ! prices (1 & ! expect$ returns f1 major asset classes 7includ+ equities1 resid5tial real e/ate1 comm]cial & indu/rial real e/ate1 agricultural real e/ate1 gold & o!r commodities1 corporate bonds1 ,u4,s4 ,gov]nm5t bonds1 ,/ate & local gov]nm5t bonds1 & o!r securities71 7,b7 ! value ( ! ,u4,s4 doll> relative to o!r curr5cies1 & 7,c7 ! value ( ! ,unit$ ,/ates doll> relative to gold1 z metrics to det]m9e :e!r ! ,f$]al ,res]ve's monet>y policy is consi/5t ) long-t]m price /ability4 #ajb4 ,price /ability m&ate 7a7 ,9 g5]al ,section #b;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bbe;a7 is am5d$-- 7#a7 by /rik+ goals ( maximum employm5t1 /able prices1 & mod]ate long-t]m int]e/ rates & ins]t+ goal ( long-t]m price /ability2 7#b7 by /rik+ ,! ,bo>d ( ,gov]nors & ins]t+ ! foll[+3 7a7 ,9 g5]al ,! ,bo>d ( ,gov]nors 2 & 7#c7 by add+ at ! end ! foll[+3 7b7 ,price /ability metrics 7#a7 ,9 g5]al ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,f$]al ,op5 ,m>ket ,committee %all-- 7,a7 def9e ! t]m long-t]m price /ability = purposes ( subsection 7a72 & 7,b7 e/abli% metrics t ! ,bo>d & ! ,committee w use to evaluate :e!r long-t]m price /ability is be+ a*iev$4 7#b7 ,e/abli%m5t ( metrics ,9 e/abli%+ ! metrics describ$ "u p>agraph 7#a77;,b71 ! ,bo>d & ,committee %all-- 7,a7 take into consid]ation price indices ( goods & s]vices2 & 7,b7 evaluate1 on an ongo+ basis-- 7i7 :e!r su* metrics are compreh5sively reflect+ price movem5ts 9 ! economy2 & 7ii7 :e!r any price movem5ts n captur$ by ! price indices ( goods & s]vices are caus+ a significant misallocation ( capital 9 ! ,unit$ ,/ates economy4 7#c7 ,metric evaluation ,! ,bo>d & ,committee %all1 ) respect to ! evaluation process requir$ pursuant to p>agraph 7#b77;,b71 monitor-- 7,a7 ! prices (1 & ! expect$ returns f1 major asset classes 7includ+ equities1 resid5tial real e/ate1 comm]cial & indu/rial real e/ate1 agricultural real e/ate1 commodities1 corporate bonds1 ,/ate & local gov]nm5t bonds1 & o!r securities7 & ! allocation ( capital 9 f9ancial m>kets & ! broad] economy2 7,b7 ! value ( ! ,unit$ ,/ates doll> relative to o!r curr5cies2 & 7,c7 ! value ( ! ,unit$ ,/ates doll> relative to gold4 7#d7 ,public disclosure2 ,report to ! ,congress ,! ,bo>d & ! ,committee %all1 ) respect to ! def9ition ( long-t]m price /ability & ! e/abli%m5t ( metrics set pursuant to p>agraph 7#a7-- 7,a7 make su* def9ition & metrics available to ! public on a website ma9ta9$ by ! ,bo>d or ! ,committee2 & 7,b7 ea* "t su* def9ition & metrics are set or revis$1 issue a report to ! ,congress /at+ su* def9ition & metrics4 4 7b7 ,additional evaluations & det]m9ations includ$ 9 semi-,annual report to ,congress ,section #b;,b7b7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bbe;b7b77 is am5d$-- 7#a7 by /rik+ conta9+ a discussion & ins]t+ ! foll[+3 conta9+-- 7#a7 a discussion 2 7#b7 by /rik+ ! p]iod & ins]t+ a semicolon2 & 7#c7 by add+ at ! end ! foll[+3 7#b7 ! results ( ! evaluation process conduct$ pursuant to section #b;,a7b77#b77;,b72 7#c7 a det]m9ation ( :e!r ! goal ( long-t]m price /ability is be+ met &1 if su* goal is n be+ met1 an explanation ( :y ! goal is n be+ met & ! /eps t ! ,bo>d & ! ,f$]al ,op5 ,m>ket ,committee w take to ensure t ! goal is met 9 ! future2 7#d7 a description ( ! ma9 monet>y policy in/rum5ts us$ by ! ,bo>d & ! ,f$]al ,op5 ,m>ket ,committee & a description ( ! /rategy ( ! ,bo>d & ! ,committee ) respect to us+ su* in/rum5ts to a*ieve ! goal ( long-t]m price /ability2 & 4 ,,ii ,f9ancial ,/ability & ,moral ,haz>d ,mitigation ,act #bja4 ,f9d+s ,! ,congress f9ds ! foll[+3 7#a7 ,! ,f$]al ,res]ve p]=ms an ess5tial function = f9ancial /ability by s]v+ z l5d] ( la/ resort 9 ord] to-- 7,a7 prev5t ! unnecess>y failures ( o!rwise solv5t ,unit$ ,/ates banks & o!r f9ancial in/itutions2 7,b7 r$uce ! likelihood ( f9ancial contagion & disruptions 9 ,unit$ ,/ates f9ancial m>kets2 & 7,c7 m9imize any adv]se effects on real output & employm5t 9 ! ,unit$ ,/ates economy4 7#b7 ,9 act+ z ! l5d] ( la/ resort1 ! ,f$]al ,res]ve1 may-- 7,a7 buy debt securities at fair m>ket value2 or 7,b7 provide %ort-t]m cr$it1 secur$ by appropriate collat]al 9 prop] m>g91 to o!rwise solv5t banks & o!r f9ancial in/itutions t enc\nt] fund+ difficulties dur+ a f9ancial crisis4 7#c7 ,nev]!less1 9 its ne>ly #ajj-ye> hi/ory1 ! ,f$]al ,res]ve has nev] cle>ly articulat$ its l5d]-(-la/-resort policy4 7#d7 ,! abs5ce ( an (ficial l5d]-(-la/-resort policy has l$ to-- 7,a7 increas$ economic unc]ta9ty because no "o kn[s ) c]ta9ty h[ ! ,f$]al ,res]ve may behave2 7,b7 f9ancially di/ress$ firms seek+ political solutions 9 ! =m ( pressure f ,congress or ! ,adm9i/ration be+ plac$ on ! ,f$]al ,res]ve to act to save !m2 & 7,c7 a moral haz>d problem f f9ancial in/itutions tak+ great] risks & increas+ lev]age bas$ ^u assumptions ( h[ ! ,f$]al ,res]ve w act1 ?\gh !re is no =mal /atem5t assur+ h[ ! ,f$]al ,res]ve w act4 7#e7 ,by e/abli%+ a =mal l5d]-(-la/-resort policy1 ! ,f$]al ,res]ve w\ld decrease unc]ta9ty 9 ! m>ket dur+ times ( f9ancial crisis & mitigate ! moral haz>ds creat$ by rec5t bail\ts4 7#f7 ,an (ficial l5d]-(-la/-resort policy %\ld provide t once a f9ancial crisis has dissipat$1 ! ,f$]al ,res]ve %\ld1 9 an ord]ly way1 sell any debt securities t-- 7,a7 ! ,f$]al ,res]ve acquir$ act+ z l5d] ( la/ resort2 & 7,b7 ! ,f$]al ,res]ve does n normally own = its ,sy/em ,acc\nt4 7#g7 ,fur!r1 to r$uce moral haz>d1 ! ,f$]al ,res]ve's l5d]-(-la/-resort policy %\ld make cle> t cr$it 9 any =m w n be provid$ to insolv5t banks or o!r f9ancial in/itution4 #bjb4 ,l5d]-(-la/-resort policy 7a7 ,9 g5]al ,n lat] ?an ! end ( ! #a-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em %all cle>ly articulate ! ,bo>d's l5d]-(-la/-resort policy4 7b7 ,consultation ,9 articulat+ ! policy requir$ "u subsection 7a71 ! ,bo>d ( ,gov]nors %all consult )-- 7#a7 ! ,f$]al ,res]ve bank presid5ts2 7#b7 ! ,comptroll] ( ! ,curr5cy2 7#c7 ! ,*airp]son ( ! ,f$]al ,deposit ,insurance ,corporation2 7#d7 ! ,securities & ,ex*ange ,commission2 7#e7 ! ,commodity ,futures ,trad+ ,commission2 & 7#f7 su* o!r p]sons ) exp]tise 9 f9ancial s]vices regulation & monet>y policy z ! ,bo>d ( ,gov]nors may det]m9e appropriate4 ,,iii ,div]sify+ ! ,f$]al ,op5 ,m>ket ,committee to ,reflect a #ba/ ,c5tury ,economy ,act #cja4 ,f9d+s ,! ,congress f9ds ! foll[+3 7#a7 ,! ,f$]al ,res]ve ,act del9eates specific requirem5ts = ! sev5 gov]nors *>g$ ) ov]sight ( ! ,f$]al ,res]ve ,sy/em4 7#b7 ,9 a reflection ( ! ,f$]al ,res]ve ,sy/em's dec5traliz$ /ructure t broadly di/ributes p[] & responsibility across ! ,nation1 ! ,act m&ates t ! presid5tially appo9t$ gov]nors come f a wide range ( geographic locations & pr(essional backgr\nds4 ,specifically1 ! fir/ undesignat$ p>agraph "u section #aj ( ! ,f$]al ,res]ve ,act /ates t ,9 select+ ! memb]s ( ! ,bo>d1 n m ?an "o ( :om %all be select$ f any "o ,f$]al ,res]ve ,di/rict1 ! ,presid5t %all h due reg>d to a fair repres5tation ( ! f9ancial1 agricultural1 indu/rial1 & comm]cial int]e/s & geographical divisions ( ! c\ntry44 7#c7 ,! ,f$]al ,op5 ,monet>y ,committee consi/s ( memb]s ( ! ,bo>d ( ,gov]nors & ! ,presid5t or ,vice ,presid5t ( ! ,f$]al ,res]ve ,bank ( ,new ,york on a p]man5t basis & rotates vot+ memb]%ip among ! rema9+ ,regional ,res]ve ,banks4 7#d7 ,! exi/+ /ructure ( ! ,f$]al ,op5 ,m>ket ,committee places too mu* au?ority 9 ! h&s ( ,wa%+ton & ,new ,york at ! exp5se ( ! rema9d] ( ! ,unit$ ,/ates4 7#e7 ,monet>y policy %\ld be conduct$ 9 ! int]e/ ( all ,am]icans & t policy goal is be/ a*iev$ by a ,f$]al ,op5 ,m>ket ,committee t provides great] repres5tation & voice 9 policy decisions to ! entire ,nation z repres5t$ by ! ,regional ,res]ve ,banks4 ,?is objective is be/ a*iev$ by re=m+ ! vot+ memb]%ip ( ! ,f$]al ,op5 ,m>ket ,committee to include all ,regional ,res]ve ,banks on a p]man5t basis4 #cjb4 ,f$]al ,op5 ,m>ket ,committee memb]%ip ,section #ab;,a7a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bfc7;a77 is am5d$-- 7#a7 by /rik+ five repres5tatives ( ! ,f$]al ,res]ve banks to be select$ z h]e9aft] provid$4 & ins]t+ #a repres5tative f ea* ( ! ,f$]al ,res]ve banks42 & 7#b7 by /rik+ &1 beg9n+ ) ! election = ! t]m comm5c+ ,m>* #a1 #aidc1 %all be elect$ annually z foll[s3 ,"o by ! bo>d ( directors ( ! ,f$]al ,res]ve ,bank ( ,new ,york1 "o by ! bo>ds ( directors ( ! ,f$]al ,res]ve ,banks ( ,bo/on1 ,philadelphia1 & ,ri*mond1 "o by ! bo>ds ( directors ( ! ,f$]al ,res]ve ,banks ( ,clevel& & ,*icago1 "o by ! bo>ds ( directors ( ! ,f$]al ,res]ve ,banks ( ,atlanta1 ,dallas1 & ,/4 ,l\is1 & "o by ! bo>ds ( directors ( ! ,f$]al ,res]ve ,banks ( ,m9neapolis1 ,kansas ,city1 & ,san ,francisco4 ,9 su* elections ea* bo>d ( directors %all h "o vote2 & ! details ( su* elections may be gov]n$ by regulations prescrib$ by ! committee1 :i* may be am5d$ f "t to "t4 & ins]t+ & %all be elect$ by ! bo>d ( directors ( ! ,f$]al ,res]ve bank t !y are to repres5t44 ,,iv ,demy/ification ( ,monet>y ,policy ,decisions ,act #dja4 ,f9d+s ,! ,congress f9ds ! foll[+3 7#a7 ,a m effici5t release ( transcripts f ! ,f$]al ,res]ve w\ld result 9 bett] guidance = m>ket p>ticipants1 & h5ce m economically effici5t decision mak+4 7#b7 ,accord+ to ,f$]al ,res]ve ,*airman ,b5 ,b]nanke1 :5 ! monet>y policy committee regul>ly provides in=mation ab\t objectives1 economic outlook1 & policy plans1 two b5efits result3 7#a7 m>kets w price assets m effici5tly1 & 7#b7 a clos] alignm5t betwe5 m>ket p>ticipants' expectations ab\t ! c\rse ( future %ort-t]m int]e/ rates & ! views ( policymak]s4 7#c7 ,! ,f$]al ,res]ve is able to release transcripts m effici5tly )\t compromis+ _! decision mak+ process4 #djb4 ,release ( transcripts ,section #ab;,a7a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bfc7;a77 is am5d$ by add+ at ! end ! foll[+3 7d7 ,release ( transcripts ,! ,committee %all release meet+ transcripts to ! public n lat] ?an ! end ( ! #c-ye> p]iod foll[+ ea* meet+4 4 ,v ,ex*ange ,rate ,responsibility ,act #eja4 ,f9d+s ,! ,congress f9ds z foll[s3 7#a7 ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,f$]al ,op5 ,m>ket ,committee ex]cise control ov] ! supply ( ,u4,s4 doll>s1 :i* is a major factor affect+ ! =eign ex*ange rate value ( ! ,unit$ ,/ates doll>4 ,!re=e1 ! ,bo>d ( ,gov]nors & ,f$]al ,op5 ,m>ket ,committee %\ld report to ,congress on ! impact ( monet>y policy on ! =eign ex*ange rate value ( ! ,unit$ ,/ates doll>4 7#b7 ,ov] ! la/ sev]al decades1 ,secret>ies ( ! ,treasury h repeat$ly us$ ! ,ex*ange ,/abilization ,fund = purposes t 7 n envision$ by ,congress4 ,to prev5t fur!r abuses1 ! ,ex*ange ,/abilization ,fund %\ld be r5am$ z ! ,special ,draw+ ,rights ,fund4 ,! ,special ,draw+ ,rights ,fund %\ld hold ! ,special ,draw+ ,rights t ! ,int]national ,monet>y ,fund provid$ to ! ,unit$ ,/ates4 ,any o!r assets curr5tly 9 ! ,ex*ange ,/abilization ,fund %\ld be liquidat$1 & ! proce$s us$ to r$uce ! public debt4 #ejb4 ,report on ! effect ( ex*ange rate policy ,section #b;,b7b7 ( ! ,f$]al ,res]ve ,act1 z am5d$ by section #ajb7;b71 is fur!r am5d$ by add+ at ! end ! foll[+3 7#e7 an analysis ( h[ ! policies ( ! ,bo>d & ! ,f$]al ,op5 ,m>ket ,committee are affect+ ! =eign ex*ange rate value ( ! ,unit$ ,/ates doll>4 4 #ejc4 ,r5am+ ( ,ex*ange ,/abilization ,fund 7a7 ,9 g5]al ,section #ecjb ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by /rik+ /abilization fund ea* place su* t]m appe>s & ins]t+ ,special ,draw+ ,rights ,fund4 7b7 ,con=m+ am5dm5ts 7#a7 ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe ,section #bee7;g77#a77;,a7 ( ! ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe 7#b ,u4,s4,c4 #ije7;g77#a77;,a77 is am5d$ by /rik+ ,ex*ange ,/abilization ,fund & ins]t+ ,special ,draw+ ,rights ,fund4 7#b7 ,em]g5cy ,economic ,/abilization ,act ( #bjjh ,! ,em]g5cy ,economic ,/abilization ,act ( #bjjh 7#ab ,u4,s4,c4 #ebaa et seq47 is am5d$-- 7,a7 9 section #aca1 by /rik+ ,ex*ange ,/abilization ,fund ea* place su* t]m appe>s 9 head+s & text & ins]t+ ,special ,draw+ ,rights ,fund2 & 7,b7 9 ! item relat+ to section #aca 9 ! table ( cont5ts ( su* ,act1 by /rik+ ,ex*ange ,/abilization ,fund & ins]t+ ,special ,draw+ ,rights ,fund4 7#c7 ,int]national ,f9ancial ,in/itutions ,act ,section #agjd ( ! ,int]national ,f9ancial ,in/itutions ,act 7#bb ,u4,s4,c4 #bfbr-#c7 is am5d$ by /rik+ /abilization fund ea* place su* t]m appe>s & ins]t+ ,special ,draw+ ,rights ,fund4 7#d7 ,special ,draw+ ,rights ,act ,! ,special ,draw+ ,rights ,act 7#bb ,u4,s4,c4 #bhfn et seq47 is am5d$ by /rik+ ,ex*ange ,/abilization ,fund ea* place su* t]m appe>s & ins]t+ ,special ,draw+ ,rights ,fund4 7c7 ,ref]5ces ,any ref]5ce 9 a law1 regulation1 docum5t1 pap]1 or o!r record ( ! ,unit$ ,/ates to ! ,ex*ange ,/abilization ,fund %all be deem$ a ref]5ce to ! ,special ,draw+ ,rights ,fund4 #ejd4 ,conv]sion to all-,,sdr ,fund 7a7 ,funds us$ ,to r$uce ! debt ,! ,secret>y ( ! ,treasury %all liquidate all prop]ty 9 ! ,special ,draw+ ,rights ,fund 7z s r5am$ "u section #ejc71 o!r ?an ,special ,draw+ ,rights1 & use all su* am\nts to r$uce ! public debt4 7b7 ,limitation on ,fund ,section #ecjb ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a77#a7-- 7,a7 by /rik+ is available to c>ry out & ins]t+ is only available to c>ry out2 & 7,b7 by /rik+ 1 & = inve/+ 9 obligations ( ! ,unit$ ,/ates ,gov]nm5t ^? am\nts 9 ! fund ! ,secret>y ( ! ,treasury1 ) ! approval ( ! ,presid5t1 decides are n requir$ at ! "t to c>ry out ?is section4 ,proce$s ( sales & inve/m5ts1 e>n+s1 & int]e/ %all be paid into ! fund & are available to c>ry out ?is section4 ,h[ev]1 ! fund is n available to pay adm9i/rative exp5ses2 & 7#b7 by /rik+ subsection 7b7 & ins]t+ ! foll[+3 7b7 ,fund only ,to hold ,special ,draw+ ,rights ,not)/&+ any o!r provision ( law1 only ,special ,draw+ ,rights may be deposit$ into ! ,special ,draw+ ,rights ,fund4 4 7c7 ,con=m+ am5dm5ts 7#a7 ,bretton ,woods ,agreem5ts ,act ,section #ah ( ! ,bretton ,woods ,agreem5ts ,act 7#bb ,u4,s4,c4 #bhf;e-#c7 is h]eby repeal$4 7#b7 ,support = ,ea/ ,european ,democracy 7,,se$7 ,act ( #aihi ,! ,support = ,ea/ ,european ,democracy 7,,se$7 ,act ( #aihi 7#bb ,u4,s4,c4 #edja et seq47 is am5d$-- 7,a7 9 section #aja7;b77#a71 by /rik+ su* z-- & all t foll[s ?r\gh ! end ( ! p>agraph & ins]t+ su* z ! au?ority provid$ 9 section #ajb7;c7 ( ?is ,act42 & 7,b7 9 section #ajb7;a71 by /rik+ section #aja7;b7-- & all t foll[s ?r\gh ! end ( ! subsection & ins]t+ section #aja7;b71 %\ld "w closely ) ! ,european ,community & int]national f9ancial in/itutions to det]m9e ! ext5t ( em]g5cy assi/ance requir$ by ,pol& = ! f\r? qu>t] ( #aihi44 7d7 ,treatm5t ( c]ta9 funds ,funds t w\ld o!rwise h be5 deposit$ into ! ,special ,draw+ ,rights ,fund 7z s r5am$ "u subsection 7a771 b = ! am5dm5ts made by ?is section1 %all in/ead be paid to ! ,secret>y ( ! ,treasury1 & ! ,secret>y ( ! ,treasury %all use su* funds to r$uce ! public debt4 7e7 ,w9d d[n p]iod = c]ta9 transactions ,not)/&+ any o!r provision ( ?is section1 dur+ ! #c-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 prop]ty o!r ?an ,special ,draw+ ,rights may be deposit$1 & ma9ta9$1 9 ! ,special ,draw+ ,rights ,fund z ne$$ to fulfill any out/&+ obligations on ! ,fund4 ,,vi ,cr$it ,allocation ,neutrality ,act #fja4 ,f9d+s ,! ,congress f9ds ! foll[+3 7#a7 ,9 conduct+ op5 m>ket op]ations1 ! ,f$]al ,op5 ,m>ket ,committee %\ld n allocate cr$it among h\seholds1 firms1 & sectors ( ! ,unit$ ,/ates economy4 7#b7 ,to assure ! cr$it allocation neutrality ( op5 m>ket op]ations among h\seholds1 firms1 & sectors ( ! ,unit$ ,/ates economy1 ! ,f$]al ,op5 ,m>ket ,committee %\ld conduct op5 m>ket op]ations 9 ,unit$ ,/ates ,gov]nm5t securities1 & repur*ase & rev]se repur*ase agreem5ts t h a t]m ( #a ye> or less1 except 9 unusual & exig5t circum/ances4 #fjb4 ,limitation on c]ta9 non-em]g5cy security pur*ases 7a7 ,9 g5]al ,! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bba et seq47 is am5d$-- 7#a7 9 section #ab;,a1 by add+ at ! end ! foll[+3 7d7 ,em]g5cy pur*as+ au?ority 7#a7 ,9 g5]al ,9 unusual & exig5t circum/ances1 ! ,committee1 by ! affirmative vote ( at lea/ #b_/c ( ! memb]s ( ! ,committee1 may au?orize any ,f$]al ,res]ve bank1 dur+ su* p]iod z ! ,committee may det]m9e-- 7,a7 to buy & sell1 at home or abroad1 bills1 notes1 rev5ue bonds1 & w>rants ) a maturity f date ( pur*ase ( n exce$+ six mon?s1 issu$ 9 anticipation ( ! collection ( taxes or 9 anticipation ( ! receipt ( assur$ rev5ues by any ,/ate1 c\nty1 di/rict1 political subdivision1 or municipality 9 ! cont95tal ,unit$ ,/ates1 includ+ irrigation1 dra9age & reclamation di/ricts1 & obligations (1 or fully gu>ante$ z to pr9cipal & int]e/ by1 a =eign gov]nm5t or ag5cy !re(2 & 7,b7 to buy & sell 9 ! op5 m>ket1 "u ! direction & regulations ( ! ,committee1 any obligation :i* is a direct obligation (1 or fully gu>ante$ z to pr9cipal & int]e/ by1 any ag5cy ( ! ,unit$ ,/ates4 7#b7 ,maximum hold+ p]iod ,any bond1 bill1 note1 rev5ue bond1 w>rant1 or o!r obligation pur*as$ by a ,f$]al ,res]ve bank pursuant to p>agraph 7#a7 %all be dispos$ ( be=e ! end ( ! #e-ye> p]iod beg9n+ on ! end ( ! p]iod det]m9$ by ! ,committee "u p>agraph 7#a74 7#c7 ,report ,! ,committee %all provide to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 n lat] ?an #g days aft] ! ,committee makes an au?orization "u ?is subsection1 a report t includes-- 7,a7 ! ju/ification = ! ex]cise ( au?ority to provide2 7,b7 ! id5tity ( ! p]son to or f :i* pur*ases or sales 7 made2 7,c7 ! date & am\nt ( ! pur*ases or sales2 & 7,d7 ! mat]ial t]ms ( ! pur*ases or sales4 2 & 7#b7 9 section #ad7;b7-- 7,a7 9 p>agraph 7#a71 by /rik+ bonds issu$ "u ! provisions ( subsection 7c7 ( section #d ( ! ,home ,own]s' ,loan ,act ( #aicc1 z am5d$1 & hav+ maturities f date ( pur*ase ( n exce$+ six mon?s1 & bills1 notes1 rev5ue bonds1 & w>rants ) a maturity f date ( pur*ase ( n exce$+ six mon?s1 issu$ 9 anticipation ( ! collection ( taxes or 9 anticipation ( ! receipt ( assur$ rev5ues by any ,/ate1 c\nty1 di/rict1 political subdivision1 or municipality 9 ! cont95tal ,unit$ ,/ates1 includ+ irrigation1 dra9age & reclamation di/ricts1 & obligations (1 or fully gu>ante$ z to pr9cipal & int]e/ by1 a =eign gov]nm5t or ag5cy !re(12 & 7,b7 by am5d+ p>agraph 7#b7 to read z foll[s3 7#b7 ,to ent] into security repur*ase agreem5ts & rev]se repur*ase agreem5ts t h a t]m ( #a ye> or less1 9 accordance ) rules & regulations prescrib$ by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em4 4 7b7 ,transition provision ,ea* ,f$]al ,res]ve bank t holds bonds1 bills1 notes1 rev5ue bonds1 w>rants1 or o!r obligations pur*as$ "u ! au?ority grant$ by a provision /ruck "u subsection 7a77#b7 %all dispose ( su* obligations n lat] ?an ! end ( ! #e-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act4 ,,vii ,bureau ( ,consum] ,f9ancial ,protection ,fund+ ,act #gja4 ,f9d+s ,! ,congress f9ds ! foll[+3 7#a7 ,z our ,nation's c5tral bank1 ! ,f$]al ,res]ve conducts ,unit$ ,/ates monet>y policy & necess>ily ex]cises broad ov]sight responsibility to ensure ! safety1 s\ndness1 & smoo? function+ ( ! ,nation's bank+ & paym5ts sy/ems4 7#b7 ,!re exi/s a broad cons5sus among policymak]s1 academics1 & mo/ in=m$ comm5tators t c5tral bank indep5d5ce is necess>y to ! prop] & effective conduct ( monet>y policy & ^? regulatory activities necess>y = ! implem5tation ( su* monet>y policy4 7#c7 ,9 ord] to pres]ve ! indep5d5ce ( its activities1 ! ,f$]al ,res]ve %\ld rema9 op]ationally & f9ancially autonom\s )9 ! ,unit$ ,/ates ,gov]nm5t4 7#d7 ,h[ev]1 ^? activities t d n relate to ! functions li/$ 9 p>agraph 7#a7 %\ld n occur outside ( ! con/itutionally grant$ au?ority ( ,congress to au?orize & ov]see ! exp5diture ( public funds4 7#e7 ,!re=e1 ! ,bureau ( ,consum] ,f9ancial ,protection %\ld be subject to ! ,f$]al appropriations process to ensure effective ,congressional ov]sight ov] its activities & use ( public funds4 #gjb4 ,bureau ( ,consum] ,f9ancial ,protection ,fund+ 7a7 ,9 g5]al ,section #ajag ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edig7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by am5d+ ! head+ ( su* subsection to read z foll[s3 ,budget1 f9ancial managem5t1 & audit4--2 7,b7 by /rik+ p>agraphs 7#a71 7#b71 & 7#c72 7,c7 by r$esignat+ p>agraphs 7#d7 & 7#e7 z p>agraphs 7#a7 & 7#b71 respectively2 & 7,d7 9 p>agraph 7#a71 z s r$esignat$-- 7i7 by /rik+ subp>agraph 7,e72 & 7ii7 by r$esignat+ subp>agraph 7,f7 z subp>agraph 7,e72 7#b7 by /rik+ subsections 7b7 & 7c72 7#c7 by r$esignat+ subsections 7d7 & 7e7 z subsections 7b7 & 7c71 respectively2 & 7#d7 9 subsection 7c71 z s r$esignat$-- 7,a7 by /rik+ p>agraphs 7#a71 7#b71 & 7#c7 & ins]t+ ! foll[+3 7#a7 ,au?orization ( appropriations ,!re is au?oriz$ to be appropriat$ su* funds z may be necess>y to c>ry out ?is title4 2 & 7,b7 by r$esignat+ p>agraph 7#d7 z p>agraph 7#b74 7b7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ,octob] #a1 #bjac4