Sen. Brown reminds Fed chair of mandate to also maintain full employment

U.S. Sen. Sherrod Brown (D-OH) is reminding the Federal Reserve not to hurt employment rates to reduce inflation.

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In a letter to Federal Reserve Board Chair Jerome Powell, Brown said it is the Fed’s responsibility to maintain full employment.

“As you know, the Federal Reserve is charged with the dual mandate of promoting maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy,” Brown, chair of the Senate Committee on Banking, Housing, and Urban Affairs, wrote to Powell.
“For working Americans who already feel the crush of inflation, job losses will make it much worse. We can’t risk the livelihoods of millions of Americans who can’t afford it. I ask that you don’t forget your responsibility to promote maximum employment and that the decisions you make at the next FOMC meeting reflect your commitment to the dual mandate.”

In June, Brown chaired a hearing with Powell and urged the Fed chair to prioritize working families in the face of rising consumer prices.

“Maintaining full employment while reducing inflation is central to protecting the workers who power our economy. Congress codified this mandate in the 1978 Full Employment and Balanced Growth Act – the Humphrey Hawkins Act. The law makes it clear that ‘Increasing job opportunities and full employment would greatly contribute to the elimination of discrimination based upon sex, age, race, color, religion, national origin, handicap, or other improper factors,’” Brown wrote.