Nick Timiraos: U.S. House Committee Considers Bill to Eliminate Fed's Dual Mandate

"Fed Whisperer" Nick Timiraos stated that the U.S. House Financial Services Committee is considering a bill to amend the Federal Reserve Act, aiming to eliminate the Federal Reserve's dual mandate and focus it solely on price stability. The bill text shows an amendment to Section 2A of the Federal Reserve Act (12 U.S.C. § 225a), deleting "maximum employment, stable prices" and inserting "stable prices." Timiraos noted that if this bill had been law at the time, the Fed's decision to cut interest rates last year would warrant reconsideration.