Bills · S 1648
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1648Finance and Financial Sector
Right-size the Federal Reserve Act
INTRO MAY 7· LAST ACTION MAY 7
READING
2MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it attempts to fundamentally reshape the role and capabilities of the Federal Reserve, the central institution responsible for the U.S. economy's stability. By setting a hard cap on the Fed's assets, it seeks to limit its ability to intervene in financial markets during crises, which could have profound implications for future economic downturns and the Fed's approach to monetary policy.
For voters, these changes could indirectly influence everything from interest rates on loans and mortgages to the overall stability of the financial system and the rate of inflation. Restoring reserve requirements and eliminating interest on excess reserves could change how banks lend money and operate, potentially affecting economic growth. The bill sparks a significant debate about the appropriate size and power of the Federal Reserve and its impact on the nation's economic health.
KEY PROVISIONS
5AI-extractedPROVISION 01
Limits the total assets of all Federal Reserve banks combined to no more than 10% of the U.S. Gross Domestic Product (GDP).
This provision fundamentally restricts the Fed's balance sheet size, impacting its ability to conduct large-scale asset purchases during economic crises.
PROVISION 02
Reinstates minimum reserve requirements for banks at levels not lower than those in effect on March 25, 2020, and stops the Fed from paying interest on reserves held in excess of these required amounts.
This changes how banks manage liquidity and could impact their profitability, reversing a significant monetary policy change made in 2020.
PROVISION 03
Requires the Federal Reserve to eliminate the "Overnight Reserve Repurchase Facility" within one year and prohibits the creation of similar facilities.
This removes a key tool the Fed uses to manage short-term interest rates and bank liquidity, limiting its control over money markets.
PROVISION 04
Mandates annual reports to Congress detailing how many foreign-owned banks and financial institutions receive interest payments from the Federal Reserve.
This increases transparency regarding the Fed's financial interactions with international entities, potentially influencing public perception and future policy debates.
PROVISION 05
Requires the Federal Reserve to submit annual reports on its plan and timeline for complying with all the new requirements introduced by the bill.
This ensures congressional oversight and accountability for the Fed's implementation of the proposed changes.
SPONSORSHIP
1 + 0
R· Florida
YRS IN OFFICE
7
BILLS LED
185
ACTION TIMELINE
2 EVENTSMAY 7
Introduced in Senate
MAY 7
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
BILL INFO
TypeSenate Bill
NumberS 1648
Congress119th
StatusIn Committee
IntroducedMay 7, 2025
Last actionMay 7, 2025
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IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED MAY 7, 2025
Senate BillS 1648Finance and Financial Sector
Right-size the Federal Reserve Act
INTRODUCED MAY 7, 2025· LAST ACTION MAY 7, 2025
PASSAGE CHANCES
—%
READING
2 min
COSPONSORS
0
COMPLEXITY
Moderate
