H.R. 5396: Price Stability Act of 2025
The bill, titled the Price Stability Act of 2025, proposes a change to the Federal Reserve's operational guidelines. Specifically, it seeks to amend the Federal Reserve Act by removing the dual mandate that currently directs the Federal Reserve Board of Governors and the Federal Open Market Committee to focus on both maximum employment and stable prices. Instead, the bill establishes that their primary responsibility should solely be on maintaining stable prices.
Key Provisions
- Removal of Employment Focus: The bill specifically eliminates the requirement for the Federal Reserve to aim for maximum employment, thereby shifting the focus to price stability alone.
- Impact on Monetary Policy: By focusing only on stable prices, this change may lead to a different approach in how the Federal Reserve adjusts interest rates and implements other monetary policies.
Implications
With the proposed changes, the Federal Reserve may prioritize controlling inflation over boosting job growth. This could influence economic conditions in various ways, potentially affecting employment levels indirectly as the focus shifts. Market reactions, investor confidence, and overall economic growth may also encounter adjustments based on this new policy direction.
Relevant Companies
None found.This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
3 bill sponsors
Actions
2 actions
| Date | Action |
|---|---|
| Sep. 16, 2025 | Introduced in House |
| Sep. 16, 2025 | Referred to the House Committee on Financial Services. |
Corporate Lobbying
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Potentially Relevant Congressional Stock Trades
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