“Lawmakers seek to change Fed mission”

“Two influential Republican lawmakers called Tuesday for a fundamental remaking of the Federal Reserve’s mission, arguing that the central bank should stop trying to reduce unemployment and instead focus solely on keeping inflation low.

The proposal by Sen. Bob Corker (Tenn.) and Rep. Mike Pence (Ind.) would end the three-decade-old “dual mandate” of the Fed, its legal charge from Congress to simultaneously aim for maximum employment and price stability.

They argued that the law creates muddled policy, as Fed officials have to juggle two different goals. They said that the Fed is better suited to fighting inflation and that other parts of the government and the private sector should handle job creation.” Read more

“Lawmakers seek to change Fed mission” 
Neil Irwin 
The Washington Post, November 16, 2010. 

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