The Washington Post reported on yesterday's press conference with Rep. Mike Pence (IN) and Sen. Bob Corker (TN). Read an excerpt here:
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.
"Providing our central bank with a clear and explicit focus on keeping inflation low will serve America better than the broader mandate approach we have today," Corker said in a statement.
The proposal, which Pence introduced as legislation this week, is the latest surprising development in the wake of the Fed's decision two weeks ago to buy $600 billion in Treasury bonds in unconventional effort to boost growth.