U.S. Senators Bob Corker, R-Tenn., and David Vitter, R-La., both members of the Senate Banking Committee, today introduced legislation to re-establish price stability as the Federal Reserve's single mandate.
"Providing the Fed with a clear and explicit focus on keeping inflation low will serve America better than the broad, bipolar mandate it has today. The dual mandate blurs the line between fiscal and monetary policy and allows Congress to shirk its responsibility to enact sound budgets and policies that produce economic growth," said Corker. "The best way to achieve full employment in the long-run is to provide markets certainty that long-term price stability will be maintained."
"I've long argued that the Fed should just focus on inflation. With endless stimulus-type initiatives coming out of the Fed and the money printing press never ending -- all under the banner of helping boost employment -- the Federal Reserve should get back to its original goal. This policy strives to do just that," said Vitter.
Stanford Economist John Taylor and St. Louis Federal Reserve President James Bullard have both expressed support for returning the Fed to a single mandate of price stability.
A copy of the Federal Reserve Single Mandate Act of 2013 can be found here: http://www.corker.senate.gov/public/index.cfm/files/serve?File_id=8dc3e1ad-68c3-49d9-bd36-7d964579234c