GALLEGO, TILLIS INTRODUCE BILL TO PROMOTE TRANSPARENCY AND PUBLIC TRUST AT THE FEDERAL RESERVE

The following information was released by the office of Arizona Senator Ruben Gallego:

Today,Senators Ruben Gallego (D-AZ)andThom Tillis (R-NC)introduced theFed Forward Actto strengthen transparency, accountability, and public confidence in the Federal Reserve (Fed) by codifying key communication and governance practices that are not currently required by statute.

READ MORE:Gallego, Tillis team up on Fed bill(Politico Morning Money)

"From interest rates on mortgages and credit cards to job growth and inflation, the Fed's decisions affect every American's wallet. People deserve clear, consistent communication from the Fed so they can make informed financial decisions,"said Senator Gallego."While the Fed has a strong history of transparency, we shouldn't leave that tradition up to whoever happens to be in charge. This bill would codify the Fed's communications practices, strengthen transparency, and protect public trust in this independent agency."

"Clear and consistent communication from the Federal Reserve is essential to public trust and effective monetary policy,"said Senator Tillis."The Fed Forward Act modernizes the Federal Reserve Act by strengthening transparency and accountability, while reinforcing Congress's oversight role and ensuring the Fed's decisions are communicated with greater clarity. By setting clear expectations around how the Fed explains its actions, this bill helps reduce uncertainty and supports more informed decision-making across our economy."

TheFed Forward Actcodifies the following practices:

Requiring Federal Open Market Committee (FOMC) meetings at least every eight weeks. Current statute only requires FOMC to meet 4 times a year, whereas tradition is every 8 weeks;

Mandating the public release of a policy statement after every FOMC meeting, which would include information about the future direction and level of the federal funds target rate;

Requiring the Fed Chair to hold a press conference and take questions following FOMC meetings and ensure FOMC meeting minutes are released no later than three weeks after policy decisions;

Mandating the public release of the semi-annual Financial Stability Report;

Mandating the Fed conduct public review of the monetary policy framework every 5 years.