,i #aadth ,,congress #ast ,session ,h4 ,r4 #biac ,,in ,,the ,,house ,,of ,,representatives ,june #be1 #bjae ,mr4 ,brady of ,texas 7for himself1 ,mr4 ,jones1 ,mr4 ,mullin1 ,mr4 ,blum1 ,mr4 ,mc,clintock1 ,mr4 ,burgess1 ,mr4 ,labrador1 ,mr4 ,farenthold1 ,mr4 ,pearce1 ,mr4 ,smith of ,texas1 ,mr4 ,mulvaney1 ,mr4 ,jordan1 ,mr4 ,cole1 ,mr4 ,woodall1 ,mr4 ,duncan of ,south ,carolina1 ,mr4 ,flores1 ,ms4 ,jenkins of ,kansas1 ,mr4 ,neugebauer1 ,mrs4 ,lummis1 ,mr4 ,weber of ,texas1 and ,mr4 ,gohmert7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to amend the ,federal ,reserve ,act to improve the functioning and transparency of the ,board of ,governors of the ,federal ,reserve ,system and the ,federal ,open ,market ,committee1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,sound ,dollar ,act of #bjae4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,title ,i--,single ,mandate for ,price ,stability ,act ,sec4 #aja4 ,findings4 ,sec4 #ajb4 ,price stability mandate4 ,title ,,ii--,financial ,stability and ,moral ,hazard ,mitigation ,act ,sec4 #bja4 ,findings4 ,sec4 #bjb4 ,lender-of-last-resort policy4 ,title ,,iii--,diversifying the ,federal ,open ,market ,committee to ,reflect a #bast ,century ,economy ,act ,sec4 #cja4 ,findings4 ,sec4 #cjb4 ,federal ,open ,market ,committee membership4 ,title ,,iv--,demystification of ,monetary ,policy ,decisions ,act ,sec4 #dja4 ,findings4 ,sec4 #djb4 ,release of transcripts4 ,title ,v--,exchange ,rate ,responsibility ,act ,sec4 #eja4 ,findings4 ,sec4 #ejb4 ,report on the effect of exchange rate policy4 ,sec4 #ejc4 ,renaming of ,exchange ,stabilization ,fund4 ,sec4 #ejd4 ,conversion to all-,,sdr ,fund4 ,title ,,vi--,credit ,allocation ,neutrality ,act ,sec4 #fja4 ,findings4 ,sec4 #fjb4 ,limitation on certain non-emergency security purchases4 ,title ,,vii--,bureau of ,consumer ,financial ,protection ,funding ,act ,sec4 #gja4 ,findings4 ,sec4 #gjb4 ,bureau of ,consumer ,financial ,protection ,funding4 ,i ,single ,mandate for ,price ,stability ,act #aja4 ,findings ,the ,congress finds the following3 7#a7 ,monetary policy can only affect the level of employment in the short term because nonmonetary factors determine the level of employment in the long term4 ,at best1 the ,federal ,reserve may temporarily increase the level of employment through monetary policy1 but such efforts risk the possibility of price inflation and increased business cycle volatility in the future4 ,however1 the ,federal ,reserve can achieve price stability in the long term through monetary policy4 ,price stability is desirable because both price inflation and price deflation damage the ,u4,s4 economy4 ,therefore1 to maximize long-term economic growth and achieve the highest sustainable level of real output and employment1 price stability should be the objective of monetary policy4 7#b7 ,countries whose central bank has a single mandate for price stability generally have a better record of achieving stable prices than countries whose central bank has a mandate that gives equal weight to other objectives such as maximum employment or low interest rates4 7#c7 ,in general1 an overly accommodative monetary policy inflates both asset prices and prices for goods and services4 ,however1 an overly accommodative monetary policy may sometimes cause a misallocation of capital that inflates asset prices disproportionately1 creating unsustainable bubbles in asset prices1 while price indices for goods and services do not register significant price inflation4 ,when asset bubbles burst1 many investments must be liquidated at considerable cost to the ,u4,s4 economy in terms of lower real output and employment4 7#d7 ,price stability cannot always be measured solely through price indices for goods and services since such indices exclude changes in asset prices4 ,therefore1 the ,federal ,reserve should monitor 7,a7 the prices of1 and the expected returns from1 major asset classes 7including equities1 residential real estate1 commercial and industrial real estate1 agricultural real estate1 gold and other commodities1 corporate bonds1 ,u4,s4 ,government bonds1 ,state and local government bonds1 and other securities71 7,b7 the value of the ,u4,s4 dollar relative to other currencies1 and 7,c7 the value of the ,united ,states dollar relative to gold1 as metrics to determine whether the ,federal ,reserve's monetary policy is consistent with long-term price stability4 #ajb4 ,price stability mandate 7a7 ,in general ,section #b;,a of the ,federal ,reserve ,act is amended-- 7#a7 by striking maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production1 so as to promote effectively the goals of maximum employment1 stable prices1 and moderate long-term interest rates and inserting pursue the goal of long-term price stability1 in order to achieve the maximum sustainable rate of output growth and the maximum level of employment through time2 7#b7 by striking ,the ,board of ,governors and inserting the following3 7a7 ,in general ,the ,board of ,governors 2 and 7#c7 by adding at the end the following3 7b7 ,price stability metrics 7#a7 ,in general ,the ,board of ,governors of the ,federal ,reserve ,system and the ,federal ,open ,market ,committee shall-- 7,a7 define the term long-term price stability for purposes of subsection 7a72 and 7,b7 establish metrics that the ,board and the ,committee will use to evaluate whether long-term price stability is being achieved4 7#b7 ,establishment of metrics ,in establishing the metrics described under paragraph 7#a77;,b71 the ,board and ,committee shall-- 7,a7 take into consideration price indices of goods and services2 and 7,b7 evaluate1 on an ongoing basis-- 7i7 whether such metrics are comprehensively reflecting price movements in the economy2 and 7ii7 whether any price movements not captured by the price indices of goods and services are causing a significant misallocation of capital in the ,united ,states economy4 7#c7 ,metric evaluation ,the ,board and ,committee shall1 with respect to the evaluation process required pursuant to paragraph 7#b77;,b71 monitor-- 7,a7 the prices of1 and the expected returns from1 major asset classes 7including equities1 residential real estate1 commercial and industrial real estate1 agricultural real estate1 commodities1 corporate bonds1 ,state and local government bonds1 and other securities7 and the allocation of capital in financial markets and the broader economy2 7,b7 the value of the ,united ,states dollar relative to other currencies2 and 7,c7 the value of the ,united ,states dollar relative to gold4 7#d7 ,public disclosure2 ,report to the ,congress ,the ,board and the ,committee shall1 with respect to the definition of long-term price stability and the establishment of metrics set pursuant to paragraph 7#a7-- 7,a7 make such definition and metrics available to the public on a website maintained by the ,board or the ,committee2 and 7,b7 each time such definition and metrics are set or revised1 issue a report to the ,congress stating such definition and metrics4 4 7b7 ,additional evaluations and determinations included in semi-,annual report to ,congress ,section #b;,b7b7 of the ,federal ,reserve ,act is amended-- 7#a7 by striking containing a discussion and inserting the following3 containing-- 7#a7 a discussion 2 7#b7 by striking the period and inserting a semicolon2 and 7#c7 by adding at the end the following3 7#b7 the results of the evaluation process conducted pursuant to section #b;,a7b77#b77;,b72 7#c7 a determination of whether the goal of long-term price stability is being met and1 if such goal is not being met1 an explanation of why the goal is not being met and the steps that the ,board and the ,federal ,open ,market ,committee will take to ensure that the goal is met in the future2 and 7#d7 a description of the main monetary policy instruments used by the ,board and the ,federal ,open ,market ,committee and a description of the strategy of the ,board and the ,committee with respect to using such instruments to achieve the goal of long-term price stability4 4 ,,ii ,financial ,stability and ,moral ,hazard ,mitigation ,act #bja4 ,findings ,the ,congress finds the following3 7#a7 ,the ,federal ,reserve performs an essential function for financial stability by serving as lender of last resort in order to-- 7,a7 prevent the unnecessary failures of otherwise solvent ,united ,states banks and other financial institutions2 7,b7 reduce the likelihood of financial contagion and disruptions in ,united ,states financial markets2 and 7,c7 minimize any adverse effects on real output and employment in the ,united ,states economy4 7#b7 ,in acting as the lender of last resort1 the ,federal ,reserve1 may-- 7,a7 buy debt securities at fair market value2 or 7,b7 provide short-term credit1 secured by appropriate collateral in proper margin1 to otherwise solvent banks and other financial institutions that encounter funding difficulties during a financial crisis4 7#c7 ,nevertheless1 in its nearly #ajj-year history1 the ,federal ,reserve has never clearly articulated its lender-of-last-resort policy4 7#d7 ,the absence of an official lender-of-last-resort policy has led to-- 7,a7 increased economic uncertainty because no one knows with certainty how the ,federal ,reserve may behave2 7,b7 financially distressed firms seeking political solutions in the form of pressure from ,congress or the ,administration being placed on the ,federal ,reserve to act to save them2 and 7,c7 a moral hazard problem from financial institutions taking greater risks and increasing leverage based upon assumptions of how the ,federal ,reserve will act1 though there is no formal statement assuring how the ,federal ,reserve will act4 7#e7 ,by establishing a formal lender-of-last-resort policy1 the ,federal ,reserve would decrease uncertainty in the market during times of financial crisis and mitigate the moral hazards created by recent bailouts4 7#f7 ,an official lender-of-last-resort policy should provide that once a financial crisis has dissipated1 the ,federal ,reserve should1 in an orderly way1 sell any debt securities that-- 7,a7 the ,federal ,reserve acquired acting as lender of last resort2 and 7,b7 the ,federal ,reserve does not normally own for its ,system ,account4 7#g7 ,further1 to reduce moral hazard1 the ,federal ,reserve's lender-of-last-resort policy should make clear that credit in any form will not be provided to insolvent banks or other financial institution4 #bjb4 ,lender-of-last-resort policy 7a7 ,in general ,not later than the end of the #a-year period beginning on the date of the enactment of this ,act1 the ,board of ,governors of the ,federal ,reserve ,system shall clearly articulate the ,board's lender-of-last-resort policy4 7b7 ,consultation ,in articulating the policy required under subsection 7a71 the ,board of ,governors shall consult with-- 7#a7 the ,federal ,reserve bank presidents2 7#b7 the ,comptroller of the ,currency2 7#c7 the ,chairperson of the ,federal ,deposit ,insurance ,corporation2 7#d7 the ,securities and ,exchange ,commission2 7#e7 the ,commodity ,futures ,trading ,commission2 and 7#f7 such other persons with expertise in financial services regulation and monetary policy as the ,board of ,governors may determine appropriate4 ,,iii ,diversifying the ,federal ,open ,market ,committee to ,reflect a #bast ,century ,economy ,act #cja4 ,findings ,the ,congress finds the following3 7#a7 ,the ,federal ,reserve ,act delineates specific requirements for the seven governors charged with oversight of the ,federal ,reserve ,system4 7#b7 ,in a reflection of the ,federal ,reserve ,system's decentralized structure that broadly distributes power and responsibility across the ,nation1 the ,act mandates that the presidentially appointed governors come from a wide range of geographic locations and professional backgrounds4 ,specifically1 the first undesignated paragraph under section #aj of the ,federal ,reserve ,act states that ,in selecting the members of the ,board1 not more than one of whom shall be selected from any one ,federal ,reserve ,district1 the ,president shall have due regard to a fair representation of the financial1 agricultural1 industrial1 and commercial interests and geographical divisions of the country44 7#c7 ,the ,federal ,open ,monetary ,committee consists of members of the ,board of ,governors and the ,president or ,vice ,president of the ,federal ,reserve ,bank of ,new ,york on a permanent basis and rotates voting membership among the remaining ,regional ,reserve ,banks4 7#d7 ,the existing structure of the ,federal ,open ,market ,committee places too much authority in the hands of ,washington and ,new ,york at the expense of the remainder of the ,united ,states4 7#e7 ,monetary policy should be conducted in the interest of all ,americans and that policy goal is best achieved by a ,federal ,open ,market ,committee that provides greater representation and voice in policy decisions to the entire ,nation as represented by the ,regional ,reserve ,banks4 ,this objective is best achieved by reforming the voting membership of the ,federal ,open ,market ,committee to include all ,regional ,reserve ,banks on a permanent basis4 #cjb4 ,federal ,open ,market ,committee membership ,section #ab;,a7a7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bfc7;a77 is amended-- 7#a7 by striking five representatives of the ,federal ,reserve banks to be selected as hereinafter provided4 and inserting #a representative from each of the ,federal ,reserve banks42 and 7#b7 by striking and1 beginning with the election for the term commencing ,march #a1 #aidc1 shall be elected annually as follows3 ,one by the board of directors of the ,federal ,reserve ,bank of ,new ,york1 one by the boards of directors of the ,federal ,reserve ,banks of ,boston1 ,philadelphia1 and ,richmond1 one by the boards of directors of the ,federal ,reserve ,banks of ,cleveland and ,chicago1 one by the boards of directors of the ,federal ,reserve ,banks of ,atlanta1 ,dallas1 and ,st4 ,louis1 and one by the boards of directors of the ,federal ,reserve ,banks of ,minneapolis1 ,kansas ,city1 and ,san ,francisco4 ,in such elections each board of directors shall have one vote2 and the details of such elections may be governed by regulations prescribed by the committee1 which may be amended from time to time4 and inserting and shall be elected by the board of directors of the ,federal ,reserve bank that they are to represent44 ,,iv ,demystification of ,monetary ,policy ,decisions ,act #dja4 ,findings ,the ,congress finds the following3 7#a7 ,a more efficient release of transcripts from the ,federal ,reserve would result in better guidance for market participants1 and hence more economically efficient decisionmaking4 7#b7 ,according to ,federal ,reserve ,chairman ,ben ,bernanke1 when the monetary policy committee regularly provides information about objectives1 economic outlook1 and policy plans1 two benefits result3 7#a7 markets will price assets more efficiently1 and 7#b7 a closer alignment between market participants' expectations about the course of future short-term interest rates and the views of policymakers4 7#c7 ,the ,federal ,reserve is able to release transcripts more efficiently without compromising their decisionmaking process4 #djb4 ,release of transcripts ,section #ab;,a7a7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bfc7;a77 is amended by adding at the end the following3 7d7 ,release of transcripts ,the ,committee shall release meeting transcripts to the public not later than the end of the #c-year period following each meeting4 4 ,v ,exchange ,rate ,responsibility ,act #eja4 ,findings ,the ,congress finds as follows3 7#a7 ,the ,board of ,governors of the ,federal ,reserve ,system and the ,federal ,open ,market ,committee exercise control over the supply of ,u4,s4 dollars1 which is a major factor affecting the foreign exchange rate value of the ,united ,states dollar4 ,therefore1 the ,board of ,governors and ,federal ,open ,market ,committee should report to ,congress on the impact of monetary policy on the foreign exchange rate value of the ,united ,states dollar4 7#b7 ,over the last several decades1 ,secretaries of the ,treasury have repeatedly used the ,exchange ,stabilization ,fund for purposes that were not envisioned by ,congress4 ,to prevent further abuses1 the ,exchange ,stabilization ,fund should be renamed as the ,special ,drawing ,rights ,fund4 ,the ,special ,drawing ,rights ,fund should hold the ,special ,drawing ,rights that the ,international ,monetary ,fund provided to the ,united ,states4 ,any other assets currently in the ,exchange ,stabilization ,fund should be liquidated1 and the proceeds used to reduce the public debt4 #ejb4 ,report on the effect of exchange rate policy ,section #b;,b7b7 of the ,federal ,reserve ,act1 as amended by section #ajb7;b71 is further amended by adding at the end the following3 7#e7 an analysis of how the policies of the ,board and the ,federal ,open ,market ,committee are affecting the foreign exchange rate value of the ,united ,states dollar4 4 #ejc4 ,renaming of ,exchange ,stabilization ,fund 7a7 ,in general ,section #ecjb of title #ca1 ,united ,states ,code1 is amended by striking stabilization fund each place such term appears and inserting ,special ,drawing ,rights ,fund4 7b7 ,conforming amendments 7#a7 ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe ,section #bee7;g77#a77;,a7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ije7;g77#a77;,a77 is amended by striking ,exchange ,stabilization ,fund and inserting ,special ,drawing ,rights ,fund4 7#b7 ,emergency ,economic ,stabilization ,act of #bjjh ,the ,emergency ,economic ,stabilization ,act of #bjjh 7#ab ,u4,s4,c4 #ebaa et seq47 is amended-- 7,a7 in section #aca1 by striking ,exchange ,stabilization ,fund each place such term appears in headings and text and inserting ,special ,drawing ,rights ,fund2 and 7,b7 in the item relating to section #aca in the table of contents of such ,act1 by striking ,exchange ,stabilization ,fund and inserting ,special ,drawing ,rights ,fund4 7#c7 ,international ,financial ,institutions ,act ,section #agjd of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbr-#c7 is amended by striking stabilization fund each place such term appears and inserting ,special ,drawing ,rights ,fund4 7#d7 ,special ,drawing ,rights ,act ,the ,special ,drawing ,rights ,act 7#bb ,u4,s4,c4 #bhfn et seq47 is amended by striking ,exchange ,stabilization ,fund each place such term appears and inserting ,special ,drawing ,rights ,fund4 7c7 ,references ,any reference in a law1 regulation1 document1 paper1 or other record of the ,united ,states to the ,exchange ,stabilization ,fund shall be deemed a reference to the ,special ,drawing ,rights ,fund4 #ejd4 ,conversion to all-,,sdr ,fund 7a7 ,funds used ,to reduce the debt ,the ,secretary of the ,treasury shall liquidate all property in the ,special ,drawing ,rights ,fund 7as so renamed under section #ejc71 other than ,special ,drawing ,rights1 and use all such amounts to reduce the public debt4 7b7 ,limitation on ,fund ,section #ecjb of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a77#a7-- 7,a7 by striking is available to carry out and inserting is only available to carry out2 and 7,b7 by striking 1 and for investing in obligations of the ,united ,states ,government those amounts in the fund the ,secretary of the ,treasury1 with the approval of the ,president1 decides are not required at the time to carry out this section4 ,proceeds of sales and investments1 earnings1 and interest shall be paid into the fund and are available to carry out this section4 ,however1 the fund is not available to pay administrative expenses2 and 7#b7 by striking subsection 7b7 and inserting the following3 7b7 ,fund only ,to hold ,special ,drawing ,rights ,notwithstanding any other provision of law1 only ,special ,drawing ,rights may be deposited into the ,special ,drawing ,rights ,fund4 4 7c7 ,conforming amendments 7#a7 ,bretton ,woods ,agreements ,act ,section #ah of the ,bretton ,woods ,agreements ,act 7#bb ,u4,s4,c4 #bhf;e-#c7 is hereby repealed4 7#b7 ,support for ,east ,european ,democracy 7,,seed7 ,act of #aihi ,the ,support for ,east ,european ,democracy 7,,seed7 ,act of #aihi 7#bb ,u4,s4,c4 #edja et seq47 is amended-- 7,a7 in section #aja7;b77#a71 by striking such as-- and all that follows through the end of the paragraph and inserting such as the authority provided in section #ajb7;c7 of this ,act42 and 7,b7 in section #ajb7;a71 by striking section #aja7;b7-- and all that follows through the end of the subsection and inserting section #aja7;b71 should work closely with the ,european ,community and international financial institutions to determine the extent of emergency assistance required by ,poland for the fourth quarter of #aihi44 7d7 ,treatment of certain funds ,funds that would otherwise have been deposited into the ,special ,drawing ,rights ,fund 7as so renamed under subsection 7a771 but for the amendments made by this section1 shall instead be paid to the ,secretary of the ,treasury1 and the ,secretary of the ,treasury shall use such funds to reduce the public debt4 7e7 ,wind down period for certain transactions ,notwithstanding any other provision of this section1 during the #c-year period beginning on the date of the enactment of this ,act1 property other than ,special ,drawing ,rights may be deposited1 and maintained1 in the ,special ,drawing ,rights ,fund as needed to fulfill any outstanding obligations on the ,fund4 ,,vi ,credit ,allocation ,neutrality ,act #fja4 ,findings ,the ,congress finds the following3 7#a7 ,in conducting open market operations1 the ,federal ,open ,market ,committee should not allocate credit among households1 firms1 and sectors of the ,united ,states economy4 7#b7 ,to assure the credit allocation neutrality of open market operations among households1 firms1 and sectors of the ,united ,states economy1 the ,federal ,open ,market ,committee should conduct open market operations in ,united ,states ,government securities1 and repurchase and reverse repurchase agreements that have a term of #a year or less1 except in unusual and exigent circumstances4 #fjb4 ,limitation on certain non-emergency security purchases 7a7 ,in general ,the ,federal ,reserve ,act is amended-- 7#a7 in section #ab;,a1 by adding at the end the following3 7d7 ,emergency purchasing authority 7#a7 ,in general ,in unusual and exigent circumstances1 the ,committee1 by the affirmative vote of at least #b_/c of the members of the ,committee1 may authorize any ,federal reserve bank1 during such period as the ,committee may determine-- 7,a7 to buy and sell1 at home or abroad1 bills1 notes1 revenue bonds1 and warrants with a maturity from date of purchase of not exceeding six months1 issued in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues by any ,state1 county1 district1 political subdivision1 or municipality in the continental ,united ,states1 including irrigation1 drainage and reclamation districts1 and obligations of1 or fully guaranteed as to principal and interest by1 a foreign government or agency thereof2 and 7,b7 to buy and sell in the open market1 under the direction and regulations of the ,committee1 any obligation which is a direct obligation of1 or fully guaranteed as to principal and interest by1 any agency of the ,united ,states4 7#b7 ,maximum holding period ,any bond1 bill1 note1 revenue bond1 warrant1 or other obligation purchased by a ,federal reserve bank pursuant to paragraph 7#a7 shall be disposed of before the end of the #e-year period beginning on the end of the period determined by the ,committee under paragraph 7#a74 7#c7 ,report ,the ,committee shall provide to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives1 not later than #g days after the ,committee makes an authorization under this subsection1 a report that includes-- 7,a7 the justification for the exercise of authority to provide2 7,b7 the identity of the person to or from which purchases or sales were made2 7,c7 the date and amount of the purchases or sales2 and 7,d7 the material terms of the purchases or sales4 2 and 7#b7 in section #ad7;b7-- 7,a7 in paragraph 7#a71 by striking bonds issued under the provisions of subsection 7c7 of section #d of the ,home ,owners' ,loan ,act of #aicc1 as amended1 and having maturities from date of purchase of not exceeding six months1 and bills1 notes1 revenue bonds1 and warrants with a maturity from date of purchase of not exceeding six months1 issued in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues by any ,state1 county1 district1 political subdivision1 or municipality in the continental ,united ,states1 including irrigation1 drainage and reclamation districts1 and obligations of1 or fully guaranteed as to principal and interest by1 a foreign government or agency thereof12 and 7,b7 by amending paragraph 7#b7 to read as follows3 7#b7 ,to enter into security repurchase agreements and reverse repurchase agreements that have a term of #a year or less1 in accordance with rules and regulations prescribed by the ,board of ,governors of the ,federal ,reserve ,system4 4 7b7 ,transition provision ,each ,federal reserve bank that holds bonds1 bills1 notes1 revenue bonds1 warrants1 or other obligations purchased under the authority granted by a provision struck under subsection 7a77#b7 shall dispose of such obligations not later than the end of the #e-year period beginning on the date of the enactment of this ,act4 ,,vii ,bureau of ,consumer ,financial ,protection ,funding ,act #gja4 ,findings ,the ,congress finds the following3 7#a7 ,as our ,nation's central bank1 the ,federal ,reserve conducts ,united ,states monetary policy and necessarily exercises broad oversight responsibility to ensure the safety1 soundness1 and smooth functioning of the ,nation's banking and payments systems4 7#b7 ,there exists a broad consensus among policymakers1 academics1 and most informed commentators that central bank independence is necessary to the proper and effective conduct of monetary policy and those regulatory activities necessary for the implementation of such monetary policy4 7#c7 ,in order to preserve the independence of its activities1 the ,federal ,reserve should remain operationally and financially autonomous within the ,united ,states ,government4 7#d7 ,however1 those activities that do not relate to the functions listed in paragraph 7#a7 should not occur outside of the constitutionally granted authority of ,congress to authorize and oversee the expenditure of public funds4 7#e7 ,therefore1 the ,bureau of ,consumer ,financial ,protection should be subject to the ,federal appropriations process to ensure effective ,congressional oversight over its activities and use of public funds4 #gjb4 ,bureau of ,consumer ,financial ,protection ,funding 7a7 ,in general ,section #ajag of the ,consumer ,financial ,protection ,act of #bjaj is amended-- 7#a7 in subsection 7a7-- 7,a7 by amending the heading of such subsection to read as follows3 ,budget1 financial management1 and audit4--2 7,b7 by striking paragraphs 7#a71 7#b71 and 7#c72 7,c7 by redesignating paragraphs 7#d7 and 7#e7 as paragraphs 7#a7 and 7#b71 respectively2 and 7,d7 in paragraph 7#a71 as so redesignated-- 7i7 by striking subparagraph 7,e72 and 7ii7 by redesignating subparagraph 7,f7 as subparagraph 7,e72 7#b7 by striking subsections 7b7 and 7c72 7#c7 by redesignating subsections 7d7 and 7e7 as subsections 7b7 and 7c71 respectively2 and 7#d7 in subsection 7c71 as so redesignated-- 7,a7 by striking paragraphs 7#a71 7#b71 and 7#c7 and inserting the following3 7#a7 ,authorization of appropriations ,there is authorized to be appropriated such funds as may be necessary to carry out this title4 2 and 7,b7 by redesignating paragraph 7#d7 as paragraph 7#b74 7b7 ,effective date ,the amendments made by this section shall take effect on ,october #a1 #bjae4