Are Republicans Preparing For A Push To Eliminate The "Maximum Employment" Part Of The Fed's Dual Mandate?
Any chance America has to curb the uncheckable 'central planning' mandate recently adopted by the Fed, which in the absence of any fiscal policy for the next 2 years, has been delegated to a control over the entire US economy, would have to come from Congress which sooner or later will have to adjust the Federal Reserve Act of 1913, and especially the 1977 provision for the Fed's dual mandate of maximum employment and stable inflation. With everyone increasingly concerned the Fed's policies may spark hyperinflation, it only makes sense that going forward the Fed should be limited to just that: focusing on inflation, and leaving employment to America's legislative bodies. This overture is precisely what Congressman Mike Pense noted on CNBC earlier, when he said (staring at 6:45 into the interview): "I appreciate the independence of the Fed, but I think it might be time to reconsider the dual mandate of the Fed, that was established in 1977. I think we ought to get the Fed back in the business of focusing on price stability and preventing inflation and not also on this dual mandate of full employment for the country. It's creating confusion here. Printing money is no substitute for sound fiscal policy. That's all we are really doing here and I think the reason you are seeing leaders across the country, and leaders across the world denouncing this action by the Fed is because they know it's going to be inflationary, and it seems to be an effort to monetize our debt... We out to get the Fed back on that individual mandate of price stability and controlling inflation and the money supply as opposed to also having a dual mandate of full employment... I think the Fed ought to be about the mission of focusing on protecting the fundamental strength and integrity of the dollar and protecting the assets of the American people."Is this the first shot across the bow of how the republicans plan on busting Blackhawk Ben's rotor?
Full clip (relevant section starts 6:45 in):