TOO LATE Act

The TOO LATE Act would add a new removal trigger for the Chair of the Federal Reserve Board. If, for two consecutive quarters, the Fed’s federal funds target rate (specifically the upper bound of the FOMC’s target range) deviates by more than 200 basis points from the average of two of three macro benchmarks (the PCE price deflator, the spread between a 5-year nominal Treasury yield and a 5-year TIPS yield, or the unemployment estimate relative to CBO projections), the President may remove the Chair. Following such a deviation, the President must issue a public, Congress-submitted justification statement with references to benchmark data and policy conduct. Congress would then hold hearings within 30 days to review the justification. The act also defines the “federal funds target rate” as the upper bound of the FOMC’s target range. In short, the bill creates a political-removal mechanism tied to quantitative comparisons between monetary policy and selected macro benchmarks, paired with mandatory public justification and congressional oversight.