Price Stability Act of 2025

May 13, 2026

Summary

Changes the Federal Reserve's job to only focus on keeping prices steady, removing its goal of creating as many jobs as possible.

What problem does this solve?

The Federal Reserve currently has two conflicting goals: keeping prices stable and ensuring maximum employment. This bill simplifies the Federal Reserve's mission to focus only on controlling prices, which is meant to make its actions more effective.

What does this bill do?

Removes dual mandate for the Federal Reserve

Amends the Federal Reserve Act to eliminate the goal of 'maximum employment'. The Federal Reserve's sole official goal will now be to maintain 'stable prices'.

Who does this affect?

The Federal Reserve
American Workers
Businesses

What is the real world impact?

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Prioritizes inflation control

Focuses the Federal Reserve's mission solely on maintaining stable prices. The belief is that a stable price environment is the best way for a central bank to support a healthy economy in the long run.

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Could lead to higher unemployment

Critics might argue that by removing the 'maximum employment' goal, the Federal Reserve could make decisions that hurt job growth. It might raise interest rates to control prices without considering the impact on workers.

When does this start?

The changes would take effect as soon as the bill becomes law.