Senator Mike Lee introduced legislation that would make much needed reforms to the nationвЂ™s Federal Reserve System. The Federal Reserve Modernization Act (FRMA) will focus the FedвЂ™s mission on price stability, require better reporting and make the organization more transparent to Americans.
вЂњThe Federal Reserve has experienced significant mission creep since its establishment in 1913, particularly in recent years where it has been involved in multi-trillion dollar bailouts and reckless easy money policies that created asset bubbles in the stock and real estate markets,вЂќ said Sen. Lee, a member of the Joint Economic Committee.В вЂњThe Constitution grants Congress the power to oversee the implementation of sound monetary policy. It is an area that receives too little attention even though it has a great impact on our economy.вЂќ
Specifically, FRMA would:
Of 47 major countries, including all G-7 and OECD countries, the U.S. is one of only two countries (Canada being the other) that do not have a single mandate for price stability or a primary mandate for price stability.В Price stability is key to growth and jobs because it encourages employers to invest and create jobs.
Click here for more information on FRMA.