A senior Member of the House Financial Services Committee, Rep. Scott Garrett (R-NJ) has introduced legislation to rewrite most aspects of the Federal Reserve’s operations that do not deal directly with monetary policy. Reflecting Rep. Garrett’s opposition to much recent regulation, the bill would impose an array of analytical and procedural obstacles to FRB rulemaking and related policy actions, slowing it down and perhaps blocking statutory implementation unless other federal agencies believe they could proceed on their own. Actions by the Financial Stability Oversight Council (FSOC) would be covered by similar rulemaking procedures, also slowing Dodd-Frank implementation, and the more routine pronouncements of the Federal Financial Institutions Examination Council (FFIEC) would be similarly hampered. The bill would also restructure employment and compensation policies, reducing pay for many officials (including members of the FSOC and its staff and those of the FFIEC) and shaking up the central bank’s tradition of retaining key staff officials for years, if not decades.
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