Scott Targets Federal Reserve, Introduces Regulatory Upheaval Bills

Florida Senator Rick Scott is taking on the Federal Reserve as the latest target in the bevy of bills he’s sponsored and cosponsored this legislative cycle.

Sen. Scott’s bills build on legislation filed earlier this year by Senator Scott and Senator Elizabeth Warren to insulate the Fed’s inspector general’s purported independence. 

The Federal Reserve System’s balance sheet currently sits at a precipitous 30% of US GDP.  Three bills were introduced by Senator Scott on Thursday, July 20, to provide Congressional oversight and limitations on the Federal Reserve. 

First, Scott drafted the Rein in the Federal Reserve Act. The act imposes a statutory oversight process for the Federal Reserve. The Federal Reserve Board of Governors must also quarterly report to Congress if quantitative easing, tightening programs, or any emergency facility begins. Annual congressional authorization for the continuation of such programs is additionally required. 

Second, Scott penned the Regular Order for Investments (ROI) of the Federal Reserve Act. If passed, it would mandate the Fed comply with accounting practices imposed on all banks and businesses operating in the United States.

Additionally, the act reinstates the original mission of the Federal reserve by limiting permitted financial transactions. The Fed would be limited to purchasing only short-term Treasuries (3-year max) by the act's prohibition of direct or indirect purchase of Mortgage Backed Securities and common stock. 

Third, Scott presented the Right-Size the Federal Reserve Act. Primarily, the legislation caps the balance sheet of the Fed at 10% of US GDP. Federal Reserve reserve requirement minimums for depository institutions as those in effect prior to March 26, 2020 are also installed by the bill. 

A full list of the tripartite legislative initiative was released by Scott’s office via twitter late-night Thursday. 

“The @FederalReserve is burning your money, and for far too long, Washington has let it happen with no consequences,” said Scott.