House task force debates replacing Fed’s dual mandate with price-stability focus

The House Financial Services Committee task force on monetary policy heard competing proposals Thursday on whether the Federal Reserve should abandon its dual mandate — price stability and maximum employment — in favor of a single, price‑stability mandate.

Members and witnesses said the debate matters because it would reshape how the Fed sets interest rates and communicates with markets. Proponents argued a single mandate would strengthen the Fed’s independence and make its objectives more measurable; opponents said the dual mandate provides necessary trade‑offs and democratic legitimacy when monetary policy affects jobs and incomes.

Chairman Lucas opened the hearing describing its purpose as an examination of “the Federal Reserve’s mission of price stability, maximum employment, and moderate long term interest rates.” Representative Juan Vargas, the…