Congressional Panel Reviews Federal Reserve's Dual Mandate

A new task force in the Republican-controlled House of Representatives has begun reviewing the Federal Reserve's dual mandate of promoting maximum employment and maintaining price stability. The task force, led by Representative Frank Lucas, aims to clarify the Fed's goals and assess whether the focus should shift primarily to inflation control, reflecting a bipartisan divide on the issue. Chairman French Hill expressed concerns that the multiple mandates may dilute the Fed's core mission, while members of the task force seek to explore potential reforms or legislation. The inquiry comes amidst broader scrutiny of the Fed's policies, with some lawmakers and commentators advocating for a more defined approach to monetary policy. As the task force conducts its hearings, notable figures from the financial sector, including former Fed officials, are expected to provide insights. This review underscores ongoing debates about the balance between employment and inflation in U.S. economic policy.