Bill Overview
Title: Federal Reserve Regulatory Oversight Act
Description: This bill requires the Board of Governors of the Federal Reserve System and Federal Reserve banks to collect assessments and other fees to offset annual appropriations with respect to nonmonetary policy-related administrative costs to the board. The board and the banks may only incur obligations or allow and pay expenses with respect to nonmonetary policy-related administrative costs pursuant to appropriations.
Sponsors: Sen. Tillis, Thomas [R-NC]
Target Audience
Population: People directly and indirectly involved with or employed by the Federal Reserve System
Estimated Size: 2000000
- The bill primarily affects administrative operations within the Federal Reserve System, specifically relating to budgeting and appropriation processes.
- Federal Reserve banks, as entities, will need to comply with the collection of assessments and fees, impacting their budgeting procedures.
- Individuals working within the Federal Reserve System, particularly those involved in administrative and financial tasks, will see changes in their operational procedures.
- Entities and businesses that interact closely with Federal Reserve banks might experience indirect effects as financial and operational processes are adjusted.
Reasoning
- The Federal Reserve Regulatory Oversight Act primarily influences the operational and financial structures within the Federal Reserve System and associated entities. Direct impacts will be on the employees within these institutions, altering their operational procedures, budgeting tasks, and possibly affecting job roles through changes in administrative responsibilities.
- Businesses interacting with Federal Reserve Banks might see indirect effects through changes in operational interactions, potentially influencing their procedural efficiency and compliance costs.
- The broader public is unlikely to feel any direct impact of the policy as it relates mostly to internal administrative processes. Hence, the simulation will reflect variations in impact severity among people directly working within the Federal Reserve system and those indirectly interacting.
Simulated Interviews
Federal Reserve Administrative Officer (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- The policy will introduce new layers to my work process.
- I am concerned about the potential for increased workload due to compliance with additional financial measures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Federal Reserve IT Specialist (San Francisco, CA)
Age: 37 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- This could mean more system updates and tests for our team.
- I see it as an opportunity for job security and skill development.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Federal Reserve Bank Teller (Dallas, TX)
Age: 29 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I'm not directly involved with administrative policies, so I foresee minimal impact on my day-to-day tasks.
- It's just another policy update that doesn't directly affect me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Small Business Owner (Chicago, IL)
Age: 53 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Changes in the Federal Reserve's administrative structure might delay some processes we depend on, like loan approvals.
- I'm hoping for more efficiency in financial services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 9 |
Federal Reserve Bank Policy Analyst (Boston, MA)
Age: 41 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This policy will enhance our regulatory framework, which is beneficial for our ongoing projects.
- I expect an increase in analytical workload but also an opportunity for comprehensive insights.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Federal Reserve Compliance Officer (Atlanta, GA)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- This policy change will add compliance directions requiring enhanced vigilance and documentation.
- It seems daunting but essential for proper financial oversight.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 7 |
Retired Economist (Washington, D.C.)
Age: 62 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I believe this policy won’t directly impact me but may influence fiscal policies broader implications.
- The Fed’s increased oversight is typically beneficial for economic stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Federal Reserve Procurement Manager (Seattle, WA)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 5/20
Statement of Opinion:
- We'll have to navigate these new financial guidelines, which could impact vendor interactions.
- It’s a challenge, but necessary for transparency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 9 |
Financial Compliance Consultant (Miami, FL)
Age: 48 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This may increase demand for compliance consulting services as businesses adjust to new Federal Reserve guidelines.
- I see a potential for growth in my business due to these changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Federal Reserve Public Relations Officer (Denver, CO)
Age: 38 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 7/20
Statement of Opinion:
- Policy changes mean more work in disseminating accurate information to the public about what these changes mean.
- It's a busy time, but vital for maintaining public trust.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $10000000 (Low: $7000000, High: $13000000)
Year 2: $5000000 (Low: $3000000, High: $8000000)
Year 3: $3000000 (Low: $2000000, High: $5000000)
Year 5: $3000000 (Low: $2000000, High: $5000000)
Year 10: $3000000 (Low: $2000000, High: $5000000)
Year 100: $3000000 (Low: $2000000, High: $5000000)
Key Considerations
- The cost of assessments and collections outweighs direct fiscal savings, although net impact on budget neutrality remains pivotal.
- Maintaining budget discipline and transparency in administrative expenditures within the Federal Reserve system is essential.
- Potential operational adjustments within the Federal Reserve could have indirect effects on stakeholders and banking procedures.