Overview
Title
To require a full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the Comptroller General of the United States, and for other purposes.
ELI5 AI
H.R. 24 is a plan that asks a special government helper to check all the activities of a big money organization in America, called the Federal Reserve, to make sure everything is going well. Once they finish checking, they need to share what they found with the people who make the rules.
Summary AI
H.R. 24 is called the "Federal Reserve Transparency Act of 2025." The bill requires the Comptroller General of the United States to conduct a full audit of the Board of Governors of the Federal Reserve System and the Federal Reserve banks within 12 months of the bill's enactment. After completing the audit, a detailed report must be submitted to Congress within 90 days, including findings and any recommendations for action. The bill also removes certain restrictions on what parts of the Federal Reserve System can be audited and makes technical changes to related laws.
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AnalysisAI
General Summary of the Bill
The bill, titled the “Federal Reserve Transparency Act of 2025,” was introduced to the 119th Congress. It mandates a comprehensive audit of the Board of Governors of the Federal Reserve System and the Federal Reserve banks within 12 months of the bill's enactment. This audit is to be conducted by the Comptroller General of the United States. Following the completion of the audit, a report summarizing the findings and recommendations must be submitted to Congress within 90 days. The bill also includes provisions for repealing certain legal limitations and making technical amendments to existing statutes to enhance the transparency of Federal Reserve operations.
Summary of Significant Issues
The bill presents several significant issues. First, it does not detail specific criteria or focus areas for the audit, which could lead to an unfocused and inefficient process. Additionally, the bill lacks information regarding the budget or resources allocated for the audit, raising concerns about potential inefficiencies or misuse of funds. Furthermore, it fails to clarify the processes for repealing limitations or amending legal codes, potentially leading to confusion in implementation. The technical amendments proposed are complex, which could result in misinterpretation by stakeholders. Lastly, the bill does not provide a clear path for how the Comptroller General's recommendations will be enacted or considered by Congress.
Potential Impact on the Public
For the general public, this bill could represent a significant step towards greater transparency and accountability of the Federal Reserve, a central entity in the U.S. financial system. Greater insight into the operations and decision-making processes of the Federal Reserve might restore or enhance public confidence in the institution. However, without specific audit criteria or clear pathways for implementing recommendations, the audit may not lead to substantive changes, potentially causing public disillusionment if expected reforms do not materialize.
Impact on Specific Stakeholders
For Congress, the audit could provide valuable insights into the Federal Reserve's operations, potentially informing future legislative actions concerning monetary policy or banking regulation. If managed effectively, this could also enhance Congress's ability to exercise oversight over one of the most powerful entities in the U.S. financial system.
For the Federal Reserve itself, the audit might serve as an opportunity for introspection and improvement but could also pose operational challenges. The lack of specified audit criteria and clear guidelines might lead to disruptions if the audit turns out to be excessively broad or intrusive, impacting the Federal Reserve's ability to fulfill its economic functions without hindrance.
Financial institutions and markets may view the increased scrutiny as potentially unsettling if it uncovers issues that affect monetary policy or financial stability. Conversely, if the audit leads to improved transparency and accountability, it could engender greater confidence in the Federal Reserve's governance among investors and financial markets.
Ultimately, the bill's effects will heavily depend on the execution and implementation of the audit and subsequent steps taken by Congress in response to the findings.
Issues
The lack of specified criteria or focus areas for the audit (Section 2(a)) could result in an overly broad and unfocused audit, potentially leading to inefficiencies in the audit process.
The absence of budget or resource allocation details for conducting the audit (Section 2) raises concerns about possible wasteful spending and the effective management of funds.
There is a lack of clarity regarding the procedure for the repeal of limitations or amendments to legal codes (Section 2(c)), leading to potential ambiguity in implementation.
The complexity of the technical and conforming amendments (Section 2(d)) may cause confusion or misinterpretation among stakeholders, potentially affecting the understanding and execution of these changes.
There is no clear explanation of how the Comptroller General's recommendations for legislative or administrative action (Section 2(b)(2)) will be enforced or considered by Congress, which might result in a lack of actionable outcomes from the audit.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the Act specifies that it shall be known as the “Federal Reserve Transparency Act of 2025.”
2. Audit reform and transparency for the board of governors of the Federal Reserve System Read Opens in new tab
Summary AI
The bill section proposes a mandatory audit of the Federal Reserve's Board of Governors and reserve banks by the Comptroller General within one year of the bill's passage, and a report must be provided to Congress within 90 days of the audit's completion. It also involves repealing certain limitations, making technical amendments to existing laws, and ensuring transparency in Federal Reserve operations.