Core Viewpoint - The Federal Reserve's dual mandate of maintaining stable prices and maximizing employment is facing increasing scrutiny, with a new bill introduced to shift focus solely to controlling inflation [1][2]. Group 1: Legislative Changes - House Financial Services Committee Chairman French Hill introduced a bill to amend the 1913 Federal Reserve Act, replacing the dual mandate with a single focus on price stability, similar to the European Central Bank [2]. - The proposed legislation aims to enhance the Fed's effectiveness by eliminating competing objectives and returning to its core responsibility of price stability [2]. Group 2: Economic Context - The introduction of the bill coincided with the Fed's decision to cut rates for the first time in 2025, primarily due to weaknesses in the job market, despite persistent inflation [4]. - Fed Chairman Jerome Powell indicated that the balance of risks is shifting away from inflation as the labor market continues to slow [4]. Group 3: Perspectives on Mandate - Former Kansas City Fed president Esther George noted that economic literature does not show significant differences in outcomes between central banks with single versus dual mandates, suggesting that dual mandates may allow for more discretion in responding to economic conditions [3]. - Stephen Miran, a new addition to the Fed board, raised questions about the Fed's mandate, highlighting a third function to promote moderate long-term interest rates alongside maximum employment and stable prices [6].