H.R. 4975 — TOO LATE Act

This section establishes a cause for removal of the Chairman of the Board of Governors of the Federal Reserve System by the President if, for two consecutive quarters, the Federal funds target rate (i.e., the upper bound of the target range for the Federal funds rate established by the Federal Open Market Committee) deviates by more than 200 basis points from the average generated by any two of the following benchmarks: (1) the Implicit Price Deflator for Personal Consumption Expenditures; (2) the difference between the yield of a 5-year Treasury bond and the yield of a 5-year Treasury Inflation-Protected Security; or (3) the difference between the Federal Reserve Board's unemployment estimates and the Congressional Budget Office's projections. Upon such a deviation, the President must issue a statement submitted to Congress and made publicly available that justifies the removal, including references to benchmark data and a discussion of monetary policy conduct. Not later than 30 days after the statement is issued, the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs must hold hearings analyzing the justification.