A group of Republican lawmakers introduced legislation that seeks to end the Federal Reserve’s dual mandate and ensure the central bank focuses exclusively on containing inflation.
The Price Stability Act would amend the Federal Reserve Act to replace the Federal Reserve System’s congressional mandate of effectively promoting maximum employment, stable prices, and moderate long-term interest rates with a single price stability mandate.
“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,” Rep. French Hill (R-AR), chairman of the House Financial Services Committee, said. “This legislation brings the Fed back to its core responsibility—price stability—and away from an overly broad agenda that weakens its effectiveness. As someone who has spent a career in banking and public service, I’m proud to lead this effort to bring clarity and focus back to our monetary policy. I thank my friends and colleagues, Rep. Donalds and Rep. Stutzman, for leading this effort with me.”
The bill was introduced by Hill along with Reps. Byron Donalds (R-FL) and Marlin Stutzman (R-IN).
“Having an independent and focused Federal Reserve is the best hope for Americans who want to make smart investments and keep their money in their pockets,” Stutzman said. “The Fed’s dual mandate has been a distraction from its true mission of keeping inflation under control. I am proud to support Chairman Hill’s Price Stability Act which allows the Fed to refocus on its primary objective and keep prices low for everyday Americans.”