U.S. Reps. French Hill (R-AR) and Byron Donalds (R-FL) introduced a bill that seeks to end the Federal Reserve’s dual mandate of promoting maximum employment and price stability so that it can focus on curbing inflation.
Their bill, the Price Stability Act, would seek to ensure that the central bank and Federal Open Market Committee (FOMC) focus exclusively on containing inflation.
“The Federal Reserve should direct its focus towards taming inflation and steer clear of economic policy fads and an expanded mission. In light of the persistently rising prices, it is past time for Congress to reconsider the central bank’s core mission and contemplate a mandate centered on safeguarding the American people’s wallets,” Hill said. “As a former community banker and Treasury official, I am pleased to reintroduce this legislation to restore sanity to our nation’s monetary policy.”
The lawmakers said that the proposed single mandate would be in line with the European Central Bank, Swiss National Bank, Bank of Japan, and Bank of Canada, among others.
“The mounting failures of the Biden Administration are devastatingly impacting the nation. With consumer prices still sky high across the board and inflation continuing to decimate American wallets everywhere, the sole focus of the Federal Reserve should be protecting the purchasing power of the U.S. dollar,” Donalds said. “I’m excited to partner with Congressman French Hill on this legislation to realign the Federal Reserve’s priorities with the needs of the American people.”