WASHINGTON – U.S. Senator Bob Corker, R-Tenn., a member of the Senate Banking Committee, today announced his desire to change the Federal Reserve’s overly broad dual mandate, which is currently to maintain full employment while also keeping inflation low. Corker believes the Federal Reserve should move to a single, more focused mandate that will direct the central bank to focus solely on price stability.
“It is time that we work to clarify the mandate of the Federal Reserve. 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,” said Corker.
This policy position comes on the heels of a lengthy meeting between the senator and Federal Reserve Chairman Ben Bernanke yesterday (Monday) morning. At this meeting, Corker probed Chairman Bernanke on recent actions by the Fed. As a result of lengthy research and discussion, Corker believes now is the time to direct the mandate of the Fed to focus only on price stability.