Sponsors
The bill increases public accounting, reporting, and limits on Fed asset purchases to reduce taxpayer exposure and improve transparency, but those changes could raise borrowing costs, increase market volatility, and restrict the Fed's crisis-response tools.
Taxpayers and the general public would get stronger, GAAP-based accounting, mark-to-market valuations, and tougher audit standards for the Fed, improving transparency and oversight of Fed finances.
Middle-class families would receive regular public analysis of how Federal Reserve policies affected their incomes and economic growth, giving citizens clearer information about policy impacts.
Small-business owners would gain detailed reporting on credit availability trends (back to 2000), improving transparency about lending conditions and the causes of changes in small-business credit.
Homeowners and middle-class borrowers could face greater mortgage-rate volatility and higher borrowing costs because Reserve Banks would be barred from buying MBS and long-dated Treasuries, removing a tool used to stabilize those markets.
Small-business owners could encounter tighter credit conditions and higher borrowing costs if limits on Reserve Bank asset purchases reduce the Fed's ability to provide liquidity during stress.
Taxpayers and financial markets could see confusing or destabilizing signals because GAAP and mark-to-market accounting requirements may force large public write-downs on Fed balance sheets even when facilities are serving policy goals.
Based on analysis of 2 sections of legislative text.
Restricts certain Fed asset purchases, requires GAAP and mark-to-market accounting, and mandates two annual Fed reports to Congress on the middle class and small business lending.
Introduced May 7, 2025 by Richard Lynn Scott · Last progress May 7, 2025
Requires the Federal Reserve Board and each Federal Reserve Bank to send two annual reports to Congress: one on the status and health of the U.S. middle class and how Fed policies affected it, and one on the impact of Fed actions since 2000 on small business lending and lines of credit. Immediately restricts Reserve Bank asset purchases by banning purchases of Treasury securities with maturities over three years, banning purchases of mortgage-backed securities, and barring direct or indirect holdings of common stock acquired after enactment. Also requires financial filings and certain Fed reports or audits to follow GAAP and use mark-to-market valuations for financial estimates.