Rein in the Federal Reserve Act

S.1646, titled the Rein in the Federal Reserve Act, would markedly increase congressional oversight over the Federal Reserve’s crisis-era tools—specifically, any quantitative easing (QE), quantitative tightening (QT), or emergency lending programs authorized under Section 13 of the Federal Reserve Act. Under the bill, the Fed would have to immediately report to Congress and publicly disclose details when such a program is initiated, and continue to provide updated 90-day reports until the program ends and all assets are removed from the Fed’s balance sheet. The bill also imposes a hard time limit: no program could run for more than one year without new congressional authorization, and it creates a congressional disapproval mechanism for standing programs. The reporting must cover rationale, financial projections, economic impact, the pace and types of assets purchased, a plan to end the program (with a goal to terminate within three years of initiation unless extended by Congress), and potential risks to price stability. In essence, the bill shifts substantial control over Fed crisis tools from the Federal Reserve to Congress, increasing transparency and creating formal pathways for disapproval and termination of Fed QE, QT, and emergency lending actions.