The U.S. Congress discusses the importance of different Federal Reserve mandates. The debate over what is more critical—price stability or maximum employment—has been ongoing.
The Federal Reserve's Dual Mandate
The House's Task Force on Monetary Policy and Economic Prosperity examines how the Federal Reserve adheres to its mandates. The focus is on determining whether the Central Bank should more consistently apply monetary policy rules.
Audit Question for the Central Bank
The requirement for auditing the Federal Reserve remains a pressing issue. Elon Musk has expressed the need for closer examination of the Central Bank's operations.
White House and Fed's Position
The White House seeks to enhance collaboration with independent agencies. The Fed retains control over monetary policy, but political appointments increasingly influence its operations.
The Congressional discussion highlights the need to reassess the Federal Reserve's mandates. This process will draw greater attention to the Fed's role in economic stability and employment.
