Senior Republicans on the House Financial Services Committee have introduced a sweeping bill to restructure the Federal Reserve after its 2013 centennial. The measure would, among other things, create a rules-based monetary policy in the U.S. that focuses principally on inflation, not unemployment or financial stability. Significant restrictions would also be placed on the ability of the U.S. agencies to undertake international negotiations that lead to standards like the Basel III rules or systemic-designation criteria. The Board would also need to disclose far more about the scenarios that underlie its stress tests. FRB rules would also come under complex new cost/benefit requirements in a process that would dramatically slow them down.
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