Referred to the Committee on Financial Services, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The TOO LATE Act would allow the President to remove the Federal Reserve's Chairman if interest rates deviate significantly from certain economic benchmarks for two consecutive quarters. Specifically, the President could remove the Chairman if the Federal funds target rate differs by more than 200 basis points (2 percentage points) from the average of any two of three economic measures: inflation data, inflation expectations derived from Treasury bonds, or unemployment figures compared to Congressional Budget Office projections. If the President decides to remove the Chairman based on this criterion, they must issue a public statement explaining the decision with supporting data and submit it to Congress. Within 30 days, the House Financial Services Committee and Senate Banking Committee would be required to hold hearings to review the President's justification for removal. This legislation would fundamentally change the Federal Reserve's independence by giving the President a new mechanism to override the central bank's leadership based on monetary policy decisions.
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