A bill to amend the Federal Reserve Act to authorize Federal reserve banks to lend certain obligations to the Secretary of the Treasury to meet the short-term cash requirements of the Treasury, and for other purposes.

(Measure passed House, amended, roll call #168 (316-75))

Amends the Federal Reserve Act to empower every Federal Reserve bank to buy and sell in the open market, under the direction and regulation of the Federal Open Market Committee, any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by, the United States as well as any agency of the United States. Authorizes the banks to lend such obligations to the Secretary of the Treasury under the direction and regulations of the Federal Open Market Committee.

Stipulates that such purchases or sales of obligations directly from the United States must be in unusual and exigent circumstances and authorized by the Board of Governors of the Federal Reserve System. Requires that the Board of Governors include in their annual report to the Congress detailed information with respect to such direct purchases. Limits the aggregate amount of obligations directly acquired from or loaned to the United States at any one time by the twelve Federal Reserve banks to $5,000,000,000.

Authorizes the Secretary of the Treasury to borrow from, or sell to, any Federal Reserve bank any such obligation in the open market for the purpose of meeting the short-term cash needs of the Treasury. Requires the Secretary to repurchase or return such obligations to the Federal Reserve bank not later than six months after the date of sale.

Terminates the provisions of this Act within two years of enactment. Authorizes the Federal Reserve banks, at such time, to buy and sell direct obligations of the United States or obligations fully guaranteed by the United States without regard to maturities but only in the open market.