By Greg Penglis and Grok AI, Monday, August 25, 2025.
Introduction:
This started out as a bill to give the President, in this case President Trump, an amendment to Title 12, which covers the Federal Reserve Act, to provide the President with a vote of no confidence over the Federal Reserve Chairman, in this case Jerome Powell. It appears abundantly clear that the Fed, which is supposed to safeguard the economy and be independent of politics, is highly political, and will try to help the economy for Democrat Administrations, like Obama’s 0% interest, and they will try to tank the economy during Republican Administrations, particularly during the booming economies of President Trump with absurdly high interest rates, especially in time for elections.
The Fed is federal only in the Chair, Vice-Chair, and Board Members. The entire rest of the federal reserve system are private banks, which are neither federal, nor a reserve. But they are dependent on the Fed for their money, the cost of their money in interest rates, the amount of money they have to have on hand for customer withdrawal which can’t be loaned out, which is the discount rate, and things like that. The point is that the Fed makes money by and for it’s private member banks, through the transfer of wealth to the banks by the % our dollar devalues, known as inflation, and by the interest on the loans that increase as the value of our US dollars decreases, because you need more loans for the same purchasing power.
So, what do you do with a Fed that is intentionally tanking the economy for globalist and socialist reasons? You have to remove the people doing it. And that is where the Presidential no confidence provision to remove the Fed Chair comes from. Not “for cause” which is the current standard, but for failing to take known measures to create the best economy. This will be measured objectively with specific criteria. Now, once you get into writing these bills with Grok AI, they seem to take a life of their own. Meaning, Grok introduces a whole bunch of extra things you might want in the bill. And so the wrestling match begins. This bill is the result.
Here is a summary of the changes this bill brings to the Federal Reserve Act in Title 12.
* Mandates 5% Annual Dollar Value Increase: Amends § 225a and adds §§ 225d, 225f to require a 5% annual increase in the U.S. dollar’s purchasing power (via 5% CPI-U deflation, reported by BLS) until its 1913 value is restored, replacing prior M2 money supply reduction mandate, allowing flexibility for the Fed, Congress, and Treasury.
* Defines 0% Unemployment as Maximum Employment: Adds § 225c to mandate a 0% U-3 unemployment rate (BLS), requiring the Fed to use all monetary policy tools (§ 248) to achieve and maintain it, with quarterly reporting.
* Prohibits Fed Interest Rate Influence: Adds § 225g to ban the Fed from setting or targeting interest rates (e.g., federal funds rate, discount rate), ensuring market-determined rates, and mandates policy focus on 5% deflation and 0% unemployment.
* Shortens Board Terms: Amends § 241 to reduce Board of Governors’ terms from 14 to 4 years, with a two-term lifetime limit (consecutive or nonconsecutive).
* Limits Chairman and Vice Chairman Terms: Amends § 242 to impose a two-term (4-year) lifetime limit across roles (Chairman, Vice Chairman, or member), clarifying no person can serve more than two terms in any combination.
* Adds Chairman Removal for No Confidence: Amends § 242(a) to allow the President to remove the Fed Chairman for failing to achieve 0% unemployment or 5% CPI-U deflation, with written notice to Congress within 7 days.
* Restricts Open-Market Operations: Amends § 355(2) to prohibit open-market operations from influencing interest rates, ensuring alignment with free market rate policy.
* Eliminates Fed Discount Rate Control: Amends § 357 to bar Federal Reserve Banks from setting discount rates, requiring market-determined rates for all lending.
* Imposes Accountability Reporting: Requires quarterly reports (§§ 225a, 225c, 225d, 225f, 225g) to Congress on progress toward 5% deflation and 0% unemployment, with failure tied to Chairman removal.
Probably the most controversial, and also the most powerful provision, is the requirement for a mandatory 5% increase in the value of the US dollar. The best way to accomplish this is a reduction of the money supply, but that’s not the only way. Grok and I worked through that possibility with M2. Reducing the money supply is the opposite of increasing the money supply. Increasing the money supply makes each dollar worth less, because there are more of them. That is the definition of inflation, and inflation of the money supply is what causes prices to rise, because the purchasing power of the dollar is reduced.
The opposite of price rises through inflation, is price decreases through “deflation.” Deflation is a reduction of the money supply, making each dollar worth more, which means it has more purchasing power, which means prices can fall as producers get the same purchase value for fewer dollars. Given that deflation is the obvious way to prosperity, you have to wonder why deflation isn’t standard monetary policy? It should be, but it’s not. Why?
Whereas We the People would be incredibly served by the value of our dollars increasing in value, and therefore increasing our purchasing power and the value of our savings, the Fed operates entirely differently, in that what is good for the American people, is not good for the Fed, and the member banks. Banks make money by making loans with interest. The Fed charges member banks, who charge smaller banks, who charge credit card companies, who charge you, ever increasing interest rates all along the trail. If the value of the US dollar increased, there would be progressively less need for loans each year, as the money would continue to increase in value, which would continue to lower prices, and increase the value of savings. That’s why the Fed is directly opposed to what is good for the American People. The Fed should be abolished.
In the meantime this Comprehensive Federal Reserve Overhaul Act, should be passed immediately.
*** It will take about 70 years according to Grok AI to restore our dollar to its 1913 value, at 5% increase in value per year.
THE COMPREHENSIVE FEDERAL RESERVE OVERHAUL ACT.
A Bill by Greg Penglis and Grok AI, September 25, 2025.
A Bill to Amend the Federal Reserve Act to Revise Governance, Monetary Policy Objectives, and Economic Criteria
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. AMENDMENT TO MONETARY POLICY OBJECTIVES.
Section 225a of Title 12, United States Code, is amended to read as follows:
“The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run monetary and credit policies that promote growth through achieving an annual increase of at least 5 percent in the purchasing power of the United States dollar, as measured by a 5 percent annual decrease in the Consumer Price Index for All Urban Consumers (CPI-U), as reported by the Bureau of Labor Statistics, until the purchasing power of the United States dollar is restored to its value on December 23, 1913, the date of enactment of the Federal Reserve Act, and other policies to increase credit availability in a market interest economy. This monetary policy shall also promote the goal of maximum employment. The Board and the Federal Open Market Committee shall submit quarterly reports to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services detailing progress toward this purchasing power increase goal, including specific monetary policy actions taken and their impact on employment.”
SECTION 2. ADDITION OF ZERO UNEMPLOYMENT MANDATE.
Chapter 3 of Title 12, United States Code, is amended by adding at the end the following new section:
Ҥ 225c. Zero Unemployment Mandate
For purposes of this chapter, ‘maximum employment’ shall mean an unemployment rate of zero percent, as measured by the U-3 unemployment rate reported by the Bureau of Labor Statistics. The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall use all available monetary policy tools, including but not limited to open-market operations, reserve requirements, and other tools authorized under section 248 of this title, to achieve and maintain an unemployment rate of zero percent. The Board and the Federal Open Market Committee shall submit quarterly reports to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services detailing specific actions taken to achieve zero percent unemployment, including the impact of such actions on employment levels.”
SECTION 3. ADDITION OF CRITERIA FOR A PRODUCTIVE AND STABLE ECONOMY.
Chapter 3 of Title 12, United States Code, is amended by adding at the end the following new section:
Ҥ 225d. Criteria for a Productive and Stable Economy
(a) Definition and Objectives. For purposes of this chapter, a ‘productive and stable economy’ shall be defined by the following measurable criteria, which the Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall achieve through all available monetary policy tools authorized under section 248 of this title:
(1) An unemployment rate of zero percent, as measured by the U-3 unemployment rate reported by the Bureau of Labor Statistics, as mandated by section 225c of this title.
(2) An annual increase of at least 5 percent in the purchasing power of the United States dollar, as measured by a 5 percent annual decrease in the Consumer Price Index for All Urban Consumers (CPI-U), as reported by the Bureau of Labor Statistics, until the purchasing power of the United States dollar is restored to its value on December 23, 1913, as mandated by section 225a of this title.
(b) Accountability and Reporting. The Board of Governors and the Federal Open Market Committee shall submit quarterly reports to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services detailing specific monetary policy actions taken to achieve the criteria in subsection (a), including their impact on unemployment and the purchasing power of the dollar. Failure to make measurable progress toward these criteria, as evidenced by the economic indicators specified in subsection (a), shall constitute actions that demonstrably hurt the economy for purposes of removal of the Chairman under section 242(a) of this title.”
SECTION 4. ADDITION OF MONETARY POLICY FOR DEFLATION.
Chapter 3 of Title 12, United States Code, is amended by adding at the end the following new section:
Ҥ 225f. Monetary Policy for Deflation
(a) Monetary Policy Mandate. The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall conduct monetary policy, using all available tools authorized under section 248 of this title, to achieve the annual increase of at least 5 percent in the purchasing power of the United States dollar, as measured by a 5 percent annual decrease in the Consumer Price Index for All Urban Consumers (CPI-U), as reported by the Bureau of Labor Statistics, mandated by section 225a of this title, resulting in a corresponding 5 percent annual increase in the purchasing power of savings.
(b) Accountability and Reporting. The Board of Governors and the Federal Open Market Committee shall submit quarterly reports to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services detailing monetary policy actions taken to achieve the 5 percent annual purchasing power increase and their impact on the purchasing power of savings and unemployment. Failure to achieve this increase, as evidenced by the CPI-U data reported by the Bureau of Labor Statistics, shall constitute actions that demonstrably hurt the economy for purposes of removal of the Chairman under section 242(a) of this title.”
SECTION 5. ADDITION OF FREE MARKET INTEREST RATES.
Chapter 3 of Title 12, United States Code, is amended by adding at the end the following new section:
Ҥ 225g. Free Market Interest Rates
(a) Prohibition on Interest Rate Influence. The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall not take any action to set, influence, or target interest rates, including but not limited to the federal funds rate, discount rate, or any other lending or borrowing rate, through open-market operations, discount window lending, or any other monetary policy tool authorized under section 248 of this title. Interest rates, including those charged by banks, mortgage companies, credit card companies, and other financial institutions, shall be determined solely by market forces without intervention by the Federal Reserve System.
(b) Monetary Policy for Mandated Goals. The Board of Governors and the Federal Open Market Committee shall conduct monetary policy using tools authorized under section 248 of this title, excluding those affecting interest rates, to achieve the annual increase of at least 5 percent in the purchasing power of the United States dollar mandated by section 225a and the zero percent unemployment rate mandated by section 225c of this title. The Board and the Federal Open Market Committee shall submit quarterly reports to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services detailing monetary policy actions taken to achieve these goals without influencing interest rates and their impact on the purchasing power of the dollar and unemployment. Failure to achieve the mandated goals, as evidenced by the economic indicators specified in sections 225a and 225c, shall constitute actions that demonstrably hurt the economy for purposes of removal of the Chairman under section 242(a) of this title.”
SECTION 6. AMENDMENT TO TERMS OF BOARD OF GOVERNORS MEMBERS.
Section 241 of Title 12, United States Code, is amended to read as follows: “When the members of the Board of Governors of the Federal Reserve System are appointed by the President, by and with the advice and consent of the Senate, as provided in this chapter, the President shall so appoint such members that their terms of office shall be four years, except that in the case of an appointment to fill a vacancy the appointment shall be for the unexpired term of the member whose vacancy is being filled. No member shall serve more than two four-year terms in their lifetime, whether consecutive or nonconsecutive.”
SECTION 7. AMENDMENT TO TERMS AND REMOVAL OF CHAIRMAN.
Section 242 of Title 12, United States Code, is amended to read as follows:
“Upon the expiration of the term of any appointive member of the Federal Reserve Board in office on the date of enactment of this amendment, the President shall fix the term of the successor to such member at four years, as designated by the President at the time of nomination, but in such manner as to provide for the expiration of the terms of not more than two members in any four-year period, and thereafter each member shall hold office for a term of four years from the expiration of the term of his predecessor, unless sooner removed for cause by the President. No member shall serve more than two four-year terms in their lifetime, whether consecutive or nonconsecutive. Of the persons thus appointed, one shall be designated by the President, by and with the advice and consent of the Senate, to serve as Chairman of the Board for a term of four years, and one shall be designated by the President, by and with the advice and consent of the Senate, to serve as Vice Chairman of the Board for a term of four years. No person shall serve more than two four-year terms; as Chairman, Vice-Chairman, or member, in their lifetime, whether consecutive or nonconsecutive.
(a) Removal of Chairman for No Confidence. The President may remove the Chairman of the Board prior to the expiration of their four-year term upon a determination of no confidence in the Chairman’s ability to manage the economy fairly and impartially, as evidenced by failure to achieve the unemployment rate of zero percent or the annual increase of at least 5 percent in the purchasing power of the United States dollar, as reported by the Bureau of Labor Statistics, in accordance with sections 225a and 225c of this title. The President shall provide written notice to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services within seven days of such removal, specifying the economic indicators and data supporting the determination. The removal shall take effect immediately upon notice.”
SECTION 8. AMENDMENT TO OPEN-MARKET OPERATIONS.
Section 355 of Title 12, United States Code, is amended in paragraph (2) by striking “To buy and sell” and inserting “To buy and sell in the open market, provided such actions do not influence or target the federal funds rate or any other interest rate”.
SECTION 9. AMENDMENT TO DISCOUNT RATES.
Section 357 of Title 12, United States Code, is amended to read as follows:
“Each Federal reserve bank shall not establish or charge rates of discount for any class of paper, and all lending by Federal reserve banks shall be conducted at market-determined interest rates.”
ENDORSEMENTS:
BILL STATUS:
COMMENTS: