Bill Overview
Title: Federal Reserve Accountability Act of 2022
Description: This bill reduces the number of Federal Reserve districts from 12 to 5, requires Senate confirmation for Federal Reserve bank presidents, and makes other changes to the operation of the Federal Reserve Board and Federal Reserve banks.
Sponsors: Sen. Toomey, Patrick [R-PA]
Target Audience
Population: people affected by economic policy changes driven by central banks
Estimated Size: 330000000
- The bill involves structural changes to the Federal Reserve which affects economic governance.
- The Federal Reserve's decisions influence monetary policy, interest rates, and inflation.
- Economic changes as a result of Federal Reserve actions can affect employment rates, mortgage rates, and overall economic stability.
- Most Americans are likely to feel indirect effects due to changes in economic policy.
Reasoning
- The Federal Reserve Accountability Act of 2022 mainly impacts people indirectly by altering the governance structure of the Federal Reserve, which in turn affects monetary policy.
- Most tangible effects for individuals would be in areas such as interest rates, inflation, and overall economic stability, which are influenced by Federal Reserve decisions.
- Given the size of the US population and budget constraints, the direct impacts on wellbeing are expected to be limited for most individuals except those closely linked to financial sectors or particularly sensitive economic environments.
- Overall, this is primarily a governance change, and while it may have profound long-term economic implications, short-term individual impacts might not be heavily felt.
Simulated Interviews
Financial Analyst (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I think the enhanced scrutiny on Federal Reserve bank presidents could lead to more robust decision-making.
- As someone in finance, what happens with the Federal Reserve has a big impact on my work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Small Business Owner (Los Angeles, CA)
Age: 32 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- I'm skeptical about how much this will really impact my business in the short term.
- If this can help stabilize inflation, that'd be beneficial.
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 | 7 | 6 |
| Year 20 | 6 | 5 |
Software Engineer (Portland, OR)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- I don't think this will directly impact me much day-to-day.
- I hope it supports the broader economy in meaningful ways.
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 | 7 | 7 |
University Professor of Economics (Chicago, IL)
Age: 54 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- The consolidation could lead to more coherent financial oversight.
- As an academic, these changes are fascinating to study.
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 | 8 |
| Year 20 | 8 | 7 |
Mortgage Broker (Houston, TX)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Changes might bring more stability, which is crucial for mortgages.
- I appreciate any effort that makes the system more transparent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Recent College Graduate (Miami, FL)
Age: 23 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- I'm more worried about finding a job than how the Federal Reserve is structured.
- Hopefully, any improvements will make the job market better.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Retired Teacher (Phoenix, AZ)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 7/20
Statement of Opinion:
- Changes to the Federal Reserve could stabilize inflation, which would help my budget.
- I don't know much about the specifics, but anything to help financially is appreciated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Construction Worker (Denver, CO)
Age: 36 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- I'm not sure how this affects me directly, but anything to keep jobs stable is good.
- I hope it leads to better long-term economic health.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Nurse (Atlanta, GA)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- Inflation affects my everyday life more than anything else.
- I have to trust that policymakers know what they're doing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 4 |
Freelancer (Seattle, WA)
Age: 27 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I worry mostly about market volatility and any policies that impact financial stability.
- It's hard to predict how much this will impact me personally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $25000000 (Low: $20000000, High: $30000000)
Year 3: $15000000 (Low: $10000000, High: $20000000)
Year 5: $10000000 (Low: $5000000, High: $15000000)
Year 10: $5000000 (Low: $2000000, High: $8000000)
Year 100: $1000000 (Low: $500000, High: $1500000)
Key Considerations
- Impact on monetary policy decision timelines due to Senate confirmation of Federal Reserve bank presidents.
- Potential risks associated with centralizing Federal Reserve activities, including loss of regional insights.
- Implications for financial markets and investor confidence during the transition period.
- Initial transition costs versus potential long-term operational efficiencies.