119-hr4975

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4975 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4975

To amend the Federal Reserve Act to establish procedures for removal of 
 the Chairman of the Board of Governors of the Federal Reserve System, 
 and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 August 15, 2025

Mr. Carter of Georgia introduced the following bill; which was referred 
 to the Committee on Financial Services, and in addition to the 
 Committee on Rules, for a period to be subsequently determined by the 
 Speaker, in each case for consideration of such provisions as fall 
 within the jurisdiction of the committee concerned

_______________________________________________________________________

 A BILL

To amend the Federal Reserve Act to establish procedures for removal of 
 the Chairman of the Board of Governors of the Federal Reserve System, 
 and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Timely Oversight of Operations, 
Liquidity, Accountability, Targeting, and Effectiveness Act'' or the 
``TOO LATE Act''.

SEC. 2. CAUSE FOR REMOVAL OF THE CHAIRMAN OF THE BOARD OF GOVERNORS OF 
 THE FEDERAL RESERVE SYSTEM.

 

Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is 
amended--

    (1) by redesignating paragraph

    (12) as paragraph

    (11) ; and

    (2) by inserting after paragraph

    (11) , as so redesignated, 
 the following new paragraph:
 ``

    (12) Cause for removal.--
 ``
        (A) In general.--The President may remove the 
 Chairman of the Board if, for two consecutive quarters, 
 the Federal funds target rate deviates by more than 200 
 basis points from the average generated by any two of 
 the following benchmarks during such quarters:
 ``
            (i) The Implicit Price Deflator for 
 Personal Consumption Expenditures.
 ``
            (ii) The difference between the yield of 
 a 5-year Treasury bond and the yield of a 5-
 year Treasury Inflation-Protected Security.
 ``
            (iii) The difference between estimates of 
 unemployment of the Board and the relative to 
 the projections of the Congressional Budget 
 Office.
 ``
        (B) Procedures.--Upon the occurrence of a 
 deviation described in subsection

    (a) , the President 
 shall issue a statement providing a justification for 
 removal of the Chair, including references to benchmark 
 data and a discussion of the conduct of monetary 
 policy. Any such statement shall be submitted to 
 Congress and made publicly available.
 ``
            (C) Congressional oversight.--Not later than 30 
 days after the President issues a statement described 
 in subparagraph
        (B) , the Committee on Financial 
 Services of the House of Representatives and the 
 Committee on Banking, Housing, and Urban Affairs of the 
 Senate shall hold hearings analyzing the justification 
 for removal of the Chair.
 ``
            (D) Federal funds target rate defined.--The term 
 `Federal funds target rate' means the upper bound of 
 the target range for the Federal funds rate established 
 by the Federal Open Market Committee.''.
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