Sponsor
Garland H. Barr
Representative · R-KY
Representative · R-KY
The bill trades a greater official focus on economic growth—potentially boosting lending and jobs—for increased risk of weaker banking oversight and higher inflation, shifting more financial and price-stability risk onto consumers and taxpayers.
Middle-class families, small businesses, and financial institutions may get more lending and job-supportive policies because the Fed and prudential regulators would explicitly consider economic growth alongside other objectives.
Banks, depositors, and taxpayers face higher risk because directing regulators to weigh growth could weaken safety-and-soundness oversight, encourage regulatory forbearance, reduce consumer protections, and increase the chance of bank losses that are covered by deposit insurance or taxpayer support.
Middle-class families and taxpayers could face higher inflation if adding growth as an explicit Fed objective complicates tradeoffs with price stability and leads policymakers to prioritize output over controlling inflation.
Based on analysis of 2 sections of legislative text.
Requires NCUA, FDIC, OCC, and the Federal Reserve to take economic growth into account when carrying out supervisory and policy duties.
Official title: To amend the Federal Credit Union Act, the Federal Deposit Insurance Act, the Revised Statutes, and the Federal Reserve Act to require Federal banking agencies to consider economic growth when conducting supervisory functions.
Introduced December 18, 2025 by Garland H. Barr · Last progress December 18, 2025
Adds an explicit economic growth objective to four federal banking statutes so bank regulators and the Federal Reserve must “take economic growth into account” alongside existing goals such as safety, soundness, maximum employment, and price stability. The change modifies the statutory language that guides supervisory and monetary policy actions by the NCUA, FDIC, OCC, and the Federal Reserve/FOMC. The result is a legal requirement for those agencies to weigh economic growth when supervising institutions and setting policy, which could change supervisory priorities and be cited in future rulemaking, enforcement, and policy decisions.