Federal Reserve System Reform Act

Federal Reserve System Reform Act - Amends the Federal Reserve Act to require the Board of Governors of the Federal Reserve System to include within its annual report to Congress the impact, during the previous twelve calendar months, of the monetary policies and actions of the Board on selected sectors of the economy, including small business, housing, agriculture, and the accessibility of credit. Requires the Board to provide to specified Congressional committees additional information requested by such committees for purposes of analyzing the monetary policies and actions of the Board and their effect on the economy.

Requires the net earnings of a Federal reserve bank, after all the dividend claims have been fully met, to be paid into the general fund of the Treasury.

Eliminates the provisions of such Act which allowed the Board to levy assessments upon Federal reserve banks to pay its expenses. Authorizes appropriations as necessary for the operations of the Board. Permits the Board to enter into agreements with the Administrator of General Services with respect to the maintenance, operation, or protection of any building owned by the Board.

Sets the term of office for members of the Board at five years. Permits any member of the Board to be removed for cause by the President.

Declares that the term of office of the members of the Board shall commence on April 1 of the calendar year in which the term of the President making such designation commences.

Requires that any vacancy in the office of the Chairman of the Board or Vice Chairman of the Board be filled in the same manner in which the original designation was made and that any such person only serve for the remainder of the term for which his or her predecessor was designated. Permits the Chairman or Vice Chairman of the Board to serve after the expiration of his or her term until a successor has taken office. Prohibits any member of the Board from serving more than two terms as either Chairman or Vice Chairman of the Board. Prohibits any person from serving as a member of the Board for more than two terms of five years.

Revises the membership of the Federal Open-Market Committee to include only the members of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury.

Amends the Accounting and Auditing Act of 1950 to require a comprehensive audit of the Federal Reserve System by the Government Accounting Office.

Amends the Congressional Budget Act of 1974 to require the first concurrent resolution on the budget to set forth recommended targets with respect to the range within which each of the following items should be maintained, in light of economic conditions and all other relevant factors: (1) the rate of interest at which Federal Reserve banks make advances or discount or rediscount commercial paper; (2) the rate of interest charged by depository institutions on residential real estate loans, business and agricultural loans, consumer loans, and all other loans; and (3) the rate of growth or diminution of monetary and credit aggregates.

Amends the Federal Reserve Act to require that monetary policy, including open-market operations, be carried out under such Act for each fiscal year in order to maintain the rate of interest charged on loans made by depository institutions and the rate of growth or diminution of the monetary and credit aggregates.

Requires the Board to notify Congress of any proposed change in monetary policy if such change is a change in any rate of interest at which any Federal Reserve bank may make advances or discount or rediscount any class of commercial paper and would cause such rate to be outside of the range established in the most recent concurrent resolution on the budget adopted for the current fiscal year. Prohibits the Board from authorizing such a change in monetary policy if either House of Congress passes a resolution disapproving such proposed change. Provides for an immediate change in monetary policy in the event of a determination by the Board that extraordinary circumstances require it.