Bill · S. 1648· Senate(119-S-1648)
Right-size the Federal Reserve Act
- Introduced
- 5/7/2025
- Last activity
- 5/7/2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Rick Scott
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The "Right-size the Federal Reserve Act" aims to limit the total assets of Federal reserve banks to no more than 10 percent of the United States gross domestic product. This limit would take effect 10 years after the section is enacted. The bill requires the Federal Reserve to report annually on interest payments made to foreign-owned banks and financial institutions. It also mandates the elimination of the Overnight Reserve Repurchase Facility within one year and prohibits the creation of a similar facility. Additionally, it amends reserve requirements to be no lower than those in effect on March 25, 2020.
Yes· 3 of 7
Does this make what the government does easier for the public to see?+4
Requires annual reporting on interest payments made to foreign-owned banks.
Is this likely to slow the rise in prices?+3
Capping the Federal Reserve's balance sheet is generally intended to limit money supply growth and reduce inflationary pressure.
Does this make the government pay for what it commits to?+3
Imposes statutory limits on the size of the Federal Reserve's balance sheet.
The opposite· 3 of 5
Would business owners be better off under this?-3
Increased reserve requirements and limited liquidity can make business loans more expensive or harder to obtain.
Does this give the federal government more power?-3
The bill restricts the discretionary power and operational tools of a federal agency (the Federal Reserve).
Is this likely to grow the economy?-2
Stricter reserve requirements and limited Fed assets could reduce liquidity in the banking system, potentially slowing growth.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Accountability: The requirement for an annual report on interest paid to foreign-owned banks and financial institutions provides transparency on where Federal reserve funds are going (Section 2(a)(1)).
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Asset Limitation: Limiting the total aggregate assets of Federal reserve banks to 10 percent of the gross domestic product may prevent excessive growth of these assets (Section 2(a)(3)).
Potential Negative Impacts for People
-
Reduced Financial Tools: The mandatory elimination of the Overnight Reserve Repurchase Facility and the ban on creating similar facilities removes a specific financial tool from the Board of Governors (Section 2(b)).
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Higher Reserve Requirements: Amending the Federal Reserve Act to ensure reserve requirements are not lower than those in effect on March 25, 2020, may impose stricter requirements on institutions (Section 2(a)(2)(A)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Fiscal Responsibility+3Reduces Inflation+3Reduces National Debt+2Improves Economic Growth-2Improves Small Business Support-2
- Demographic And Interest Groups
- Good For Retirees+2Good For Low Income Households+1Good For Middle Class Households+1Good For Business Owners-3Good For Farmers-2
- Governance And Ideology
- Improves Government Transparency+4Increases Federal Power-3
- 5/7/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Introduced in Senate