Sponsors (3)
The bill shifts the Fed toward stronger price-stability focus — benefiting savers and reducing market uncertainty — but risks weaker labor-market support, higher unemployment hardship, and slower local economic recoveries.
Seniors and other households on fixed incomes face lower inflation risk if the Fed shifts to prioritize price stability, helping preserve purchasing power.
Financial institutions and taxpayers get clearer guidance on the Fed's priorities, reducing policy uncertainty about inflation-fighting actions.
Workers, job seekers, and households (especially low- and middle-income) may face weaker labor-market support, slower job growth, and greater unemployment-driven hardship if the Fed deprioritizes employment.
States and localities could experience slower economic recoveries after downturns if monetary policy places less emphasis on supporting employment.
Based on analysis of 2 sections of legislative text.
Removes "maximum employment" from the Federal Reserve Act's stated objectives, leaving "stable prices" as the sole objective in the cited sentence of 12 U.S.C. 225a.
Introduced September 16, 2025 by French Hill · Last progress September 16, 2025
Removes the phrase "maximum employment," from the Federal Reserve Act's statutory statement of objectives, leaving "stable prices" as the only objective named in that sentence of 12 U.S.C. 225a. The change narrows the language in the cited provision to prioritize price stability in the statute's stated objective. This is a targeted, single-change amendment to the Federal Reserve Act that alters the statutory wording of the Fed's objectives; practical effects on policy would depend on how the Federal Reserve interprets and applies the amended language.