House Financial Services Committee Chairman French Hill (R-Ark.) today announced the introduction of legislation to end the Federal Reserve’s dual mandate “and ensure the central bank focuses exclusively on containing inflation.”
The Fed is currently tasked with establishing monetary policy that promotes maximum employment while holding down prices. The Price Stability Act would eliminate the maximum employment part of the mandate and instead direct the Fed to focus on price stability, according to a statement. Reps. Byron Donalds (R-Fla.) and Marlin Stutzman (R-Ind.) are co-sponsoring the bill with Hill.
“For too long, the Federal Reserve has been stretched between competing objectives. It’s time to return to a clear, singular focus: protecting the wallets of American families by keeping inflation in check,” Hill said. “This legislation brings the Fed back to its core responsibility — price stability — and away from an overly broad agenda that weakens its effectiveness.”
