–Sen. Corker, Rep. Pence Seek Fed To Focus Only On Price Stability
–Congressional Republicans Intensify Slams of Bernanke, Fed Policy
By John Shaw
WASHINGTON (MNI) – Sen. Bob Corker, a member of the Senate Banking
Committee, and Rep. Mike Pence, a member of the House Republican
leadership team, said Tuesday they are introducing legislation that
would end the Federal Reserve Board’s dual mandate.
They argue that the central bank’s exclusive focus should be on
price stability.
In a statement, Corker said he met with Federal Reserve Board
Chairman Ben Bernanke Monday and believes the Fed should have a “single
more focused mandate that will direct the central bank to focus solely
on price stability.”
The legislation appears to be part of an intensified Republican
critique of the Fed and its aggressive efforts to bolster the U.S.
economy through two iterations of quantitative easing.
Congressional Republicans say they fear that the central bank’s
actions may increase inflationary pressures in the economy.
The fate of the legislation next year is uncertain. As a practical
matter, if the economy picks up strength and inflation remains low it is
likely to fall by the wayside. But if the economy continues to struggle
or inflation surges, the bill may be given a full hearing next year.
Bernanke will testify a number of times on Capitol Hill in the
early months of 2011 and will have ample opportunity to explain the
Fed’s policies and what he hopes they achieve.
** Market News International Washington Bureau: (202) 371-2121 **
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