Sponsors (3)
The bill trades a clearer, price-stability-focused Fed mandate—which can reduce inflation and monetary-policy uncertainty for markets—for greater risks to employment support, reduced ability to respond to economic shocks, and increased political scrutiny of the Fed.
Middle-class families and taxpayers may see lower inflation and preserved purchasing power if the Fed prioritizes price stability.
Financial institutions and investors gain clearer guidance from a Fed mandate focused on price stability, reducing monetary policy uncertainty for planning and investment decisions.
Seniors, retirees, and other borrowers/savers could face less long-term interest-rate variability because the legislation preserves an explicit goal of moderating long-term rates alongside price stability.
Workers and job-seekers (especially middle-class families) could face weaker Fed attention to employment, raising unemployment risk and slowing job growth during disinflationary periods.
The Fed's reduced policy flexibility to prioritize price stability could limit its ability to respond to demand-side shocks, increasing economic volatility and risks to financial institutions and retirees.
Altering the long-standing 'dual mandate' expectations may erode public confidence in Fed independence and raise the political risk of future legislative interference.
Based on analysis of 2 sections of legislative text.
Removes “maximum employment” from the Federal Reserve’s statutory mandate, leaving stable prices and moderate long-term interest rates as explicit goals.
Introduced September 16, 2025 by French Hill · Last progress September 16, 2025
Amends the Federal Reserve Act to remove the phrase “maximum employment” from the Fed’s statutory mandate, leaving only directions to promote stable prices and moderate long-term interest rates. Also establishes a short title for the Act. The change takes effect when the law is enacted and narrows the explicit objectives Congress gives the Federal Reserve when setting monetary policy.