Summary

Removes the Federal Reserve’s statutory instruction to pursue “maximum employment,” leaving “stable prices” as the only congressionally-directed objective in the specified clause of the Federal Reserve Act. It also establishes a short title for the law and takes effect upon enactment. The change narrows the Fed’s legislated objective from a dual mandate (price stability and maximum employment) to a single, price-focused mandate and could shift monetary-policy priorities over time.

• Removes the phrase “maximum employment” from the Federal Reserve Act’s specified objectives in 12 U.S.C. § 225a.
• Leaves “stable prices” as the sole congressionally-directed objective in that clause, effectively narrowing the statutory language from a dual mandate to a single focus.
• Creates a short title for the Act and makes the change effective upon enactment.
• Does not change Fed tools, powers, or funding; it changes statutory guidance.
• Could shift the Fed’s policy emphasis toward inflation control and away from employment considerations over time.
• May affect interest rates, borrowing costs, and financial-market expectations if the Fed adjusts policy priorities.
• May have broader economic effects on workers, borrowers, savers, and businesses depending on how the Fed responds.
• Raises political and legal questions about congressional direction of monetary policy but does not prescribe specific policy actions.