Legislation sponsored on Sept. 16 by U.S. Rep. French Hill (R-AR) would 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,” said Rep. Hill, chairman of the U.S. House Financial Services Committee. “It’s time to return to a clear, singular focus: protecting the wallets of American families by keeping inflation in check.”
The congressman introduced the Price Stability Act, H.R. 5396, to amend the Federal Reserve Act to remove the mandate on the Board of Governors of the Federal Reserve System and the Federal Open Market Committee to focus on maximum employment, according to the Congressional Record bill summary.
“This legislation brings the Fed back to its core responsibility — price stability — and away from an overly broad agenda that weakens its effectiveness,” Rep. Hill said. “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.”
H.R. 5396 has been referred for consideration to the Financial Services Committee for consideration.
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