S. 1648 · Where this bill is now
In committee
Introduced in the Senate, May 7, 2025
What this bill does
In plain words · AI-written from the official summaryLimits Federal Reserve's size and operations
This bill would place new restrictions on how large the Federal Reserve can grow and how it operates. It would cap the total assets held by all Federal Reserve banks at no more than 10% of the U.S. economy's total output, a limit that would take effect 10 years after the bill becomes law. The bill would also eliminate one specific Federal Reserve facility used for monetary policy and set a floor on reserve requirements that banks must maintain.
How it affects you
The direct effects on everyday people are not clearly spelled out in the bill's summary. The changes mainly affect how the Federal Reserve conducts its operations and manages its balance sheet, which is an indirect factor in broader economic conditions like interest rates and inflation.
Read the official summary (Introduced in Senate, May 7, 2025)
Right-size the Federal Reserve Act
This bill places restrictions on the Federal Reserve System, including by placing a cap on specified assets, eliminating a Federal Reserve Board facility, and setting forth conditions on bank reserve requirements.
The bill places a cap on the total aggregate assets of all Federal Reserve banks. Specifically, these assets must not amount to more than 10% of the U.S. gross domestic product. This cap takes effect 10 years after the bill’s enactment.
The bill also eliminates the Overnight Reverse Repurchase Facility, a board facility that conducts monetary policy through security repurchase agreements.
The board’s depository institution reserves requirements must not be lower than the reserve requirements as of March 25, 2020. The board and each Federal Reserve bank must annually report on certain interest payments to foreign-owned banks and financial institutions.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1648
A BILL
Right-size the Federal Reserve Act
Sponsor: Sen. Rick Scott (R-FL) · Introduced May 7, 2025 · Finance and Financial Sector · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action May 7, 2025: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.”