Legislators recommend reducing the number of regional banks.
Outgoing Senator Pat Toomey penned a legislative proposition to reshape the Federal Reserve’s regional banks and nomination process. Supported by six other legislators, the bill calls for regional Fed bank presidents to be confirmed by the Senate rather than nominated internally. It also calls for the reduction of the number of regional Federal Reserve banks from twelve to five.
“This will enable more effective congressional oversight and ensure that all presidents of Fed regional banks have permanent seats on the Federal Open Market Committee,” Senator Toomey stated. Federal Reserve regional banks are technically owned by private banks and not the government, which reform advocates have been working to address for some time.
As the Lord Leads, Pray with Us…
- For federal legislators as they consider reforms for the central bank.
- For wisdom for Chair Jerome Powell and the members of the Federal Reserve.
Sources: AP, Reuters
