Federal Reserve Reform Act

(Reported to Senate from the Committee on Banking, Housing and Urban Affairs with amendment, S. Rept. 94-1151)

Federal Reserve Reform Act - Amends the Federal Reserve Act to provide that the President, with the advice and consent of the Senate, shall appoint the Chairman of the Board of Governors of the Federal Reserve System for a term of office of four years. Requires that the membership of the Board of Governors consist of individuals who are broadly representative of the public interest.

Expands the board of directors of the Federal Reserve banks from nine to 12 members. Increases the number of class C directors on the boards from three to six members, and requires the appointment of such directors without discrimination.

Requires that monetary policy formulated under the Act implement the policy of maintaining the long-run growth of the monetary aggregates, so as to promote maximum employment, stable prices, and moderate long-term interest rates.

Directs the Board of Governors to consult with Congress at semiannual hearings of the Banking Committees of the House and the Senate with respect to monetary policy for the upcoming 12 months.

Extends until June 30, 1977, the moratorium on State and local "doing business" taxes on out-of-State financial depositories under the State Taxation of Depositories Act.

Adds New York and New Jersey to the list of States in which third party payment transfer authority is allowed, if such authority is granted by such States to State-chartered thrift institutions.

Prohibits the payment of interest on third party payment transfer accounts in New York and New Jersey unless such authority is granted to State-chartered thrift institutions in such States.