Right-size the Federal Reserve Act
Sen. Scott Introduces Bill to Shrink Federal Reserve Assets and End Interest on Excess Reserves
This bill is currently in the early stages of the legislative process after being sent to the Senate Committee on Banking, Housing, and Urban Affairs for review. It is actively moving through the system, but no future hearings or votes have been scheduled yet. There is no companion bill currently associated with this proposal.
Legislative Progress
This bill proposes massive changes to how the central bank works that most lawmakers and economists would see as too risky for the economy.
Key Points
Impact Analysis
Personal Impact
Life & Work
By drastically shrinking the Fed's balance sheet and eliminating key monetary tools, this bill could tighten financial conditions and make borrowing more expensive. Small businesses, which rely heavily on bank lending and are sensitive to credit conditions, could face higher interest rates and reduced access to loans during economic downturns, since the Fed would have far fewer tools to stabilize markets.
“The total aggregate assets of all Federal reserve banks shall be in an amount that is not more than 10 percent of the gross domestic product of the United States.”
Activities
Milestones
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
Right-size the Federal Reserve Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.