Raising Us Central Bank Oversight Mandate
The head of a congressional panel planning a broad review of how the US central bank makes its interest rate decisions questions whether controlling inflation should be prioritized over safeguarding employment. Critics argue that the Fed's dual mandate has become irrelevant, with price stability and maximum employment goals often conflicting. The Fed's framework review comes at a time when lawmakers are pushing for changes to the Federal Reserve Act.
- This broad overhaul of the Fed's oversight could potentially address long-standing concerns about inflation targeting and monetary policy rules.
- Will the newly expanded congressional panel on monetary policy be able to make meaningful reforms, or will the institutional inertia of the Fed continue to undermine their efforts?