Fed's Dual Mandate On Jobs, Prices Is Appropriate -Spokeswoman
2010年11月17日 - 5:40AM
Dow Jones News
The U.S. Federal Reserve's two objectives of full employment and
stable prices are appropriate, a central bank spokeswoman said
Tuesday, after Republicans urged a change in the Fed's dual
mandate.
After meeting with Fed Chairman Ben Bernanke, Sen. Bob Corker
(R., Tenn.) Tuesday called for a narrowing of the Fed's focus to
price stability, removing the other goal of achieving maximum
sustainable employment.
"The Federal Reserve is not seeking a change to its statutory
mandate. The dual mandate is appropriate," said Michelle Smith,
spokeswoman at the Fed.
A top House Republican, Mike Pence of Indiana, Tuesday
introduced a bill that would scale back the Fed's mandate. He said
the Fed's recent decision to buy $600 billion in U.S. Treasurys to
boost the economy and jobs is an example of the failure of the
Fed's dual mandate because it runs the risk of sparking inflation
and hurting the U.S. dollar.
The majority of central banks in large advanced economies have
price stability as their only goal. But the Fed was given two
objectives by Congress: after the 1930s Great Depression and high
unemployment, the Fed was tasked with keeping the economy and jobs
growing. Price stability was added following the double-digit
inflation seen in the 1970s.
The two Republican lawmakers are due to hold a press conference
detailing their proposals later Tuesday.
-By Luca Di Leo, Dow Jones Newswires; 202 862 6682;
luca.dileo@dowjones.com