Republicans in Congress Turn Up Scrutiny of Fed as Inflation Persists
Congressional Republicans are intensifying their scrutiny of the Federal Reserve, a move that coincides with the central bank's struggles to contain stubborn inflation and redefine its role as a regulator. The incoming House task force will examine the Fed's conduct of monetary policy and bank regulation, grappling with questions about its dual mandate and supervisory role. The Fed is currently undergoing its own five-year review of its monetary policy strategy, seeking to address criticisms that it was slow to respond to inflation following the Covid-19 pandemic.
- This increased scrutiny highlights a growing divide between the Republican-led Congress and the independent Federal Reserve, with significant implications for the central bank's ability to implement its policies effectively.
- Will the Fed's evolving role as a regulator be shaped by the bipartisan task force's recommendations, or will partisan differences continue to hinder its efforts to address inflation and stabilize the economy?