Congressional Budget Office Cost Estimate: H.R. 4270, Monetary Policy Transparency and Accountability Act of 2017   [open pdf - 92KB]

"Current law gives the Federal Reserve's Board of Governors and its Federal Open Market Committee (FOMC) broad authority to establish and conduct monetary policy. Twice each year, the Chair of the Federal Reserve is required to present Congressional testimony and to report to the Congress concerning the efforts, activities, objectives, and plans related to monetary policy. H.R. 4270 would require the FOMC to establish and describe an annual strategy for monetary policy that would include a mathematical description of the way that the committee would adjust the instruments of monetary policy, including an identified primary instrument, in response to changes in economic indicators. The bill would also require the Federal Reserve's testimony and reports to describe at least one additional reference rule, or alternative mathematical equation that would govern the conduct of monetary policy, and identify whether and how actual monetary policy has deviated from that rule."

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