The Federal Reserve would face a hard cap limiting its total assets to no more than 10 percent of U.S. gross domestic product, taking effect ten years after enactment. The bill also requires the Fed to eliminate its Overnight Reverse Repurchase Facility within one year and bars creation of any similar facility. Reserve requirements on banks could not fall below the levels in effect on March 25, 2020, and the Fed would have to publish an annual report on interest paid to foreign-owned banks. Households could see indirect effects through changes in how the Fed manages money supply and interest rates.
Transparency & Accountability
- Federal Reserve reporting — Annual report required on interest paid to foreign-owned banks
- Fed compliance plan — Annual report to Congress on timeline for hitting asset cap
Average Household Impact
- Fed Overnight Reverse Repo Facility — Eliminated within one year, narrowing monetary policy tools
Congressional Summary
Right-size the Federal Reserve ActThis bill places restrictions on the Federal Reserve System, including by placing a cap on specified assets, eliminating a Federal Reserve Board facility, and setting forth conditions on bank reserve requirements.The bill places a cap on the total aggregate assets of all Federal Reserve banks. Specifically, these assets must not amount to more than 10% of the U.S. gross domestic product. This cap takes effect 10 years after the bill’s enactment.The bill also eliminates the Overnight Reverse Repurchase Facility, a board facility that conducts monetary policy through security repurchase agreements.The board’s depository institution reserves requirements must not be lower than the reserve requirements as of March 25, 2020. The board and each Federal Reserve bank must annually report on certain interest payments to foreign-owned banks and financial institutions.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-05-07
- Date Added
- 2026-04-28
- Source
- Congress.gov →
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