Price Stability Act of 2025
Rep. Hill Introduces the Price Stability Act to Narrow Federal Reserve Focus to Inflation
The Price Stability Act of 2025 is currently moving through the House Financial Services Committee. The committee recently voted to approve the bill with changes, which means it is now ready to be sent to the full House for further consideration. There are no other specific actions scheduled at this time.
Legislative Progress
This is a major change to economic policy that lacks broad support from the opposing party. It is likely to face strong resistance in the Senate and from the White House.
Key Points
Impact Analysis
Personal Impact
Life & Work
Union workers often benefit from a Fed that weighs employment alongside inflation. If the Fed no longer has a legal duty to consider jobs, it could raise interest rates more aggressively during downturns, leading to layoffs in manufacturing, construction, and other unionized sectors. Workers in cyclical industries would lose an institutional backstop that currently tempers the Fed's willingness to sacrifice jobs in the name of lower inflation.
“amended by striking ``maximum employment, stable prices,'' and inserting ``stable prices''.”
Programs
Milestones
Ordered to be Reported (Amended) by the Yeas and Nays: 30 - 21.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Financial Services.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articlesSix words from Capitol Hill: 'Maximum employment' on the chopping block
The HFSC is examining H.R. 5396, the Price Stability Act of 2025, which would amend Section 2A of the Federal Reserve Act by striking 'maximum employment, stable prices,' and inserting 'stable prices'. This surgical edit removes the employment leg of the Fed's dual mandate established in 1977.
Price Stability Act sponsored by Hill to streamline focus of Federal Reserve
Legislation sponsored by U.S. Rep. French Hill would replace the Federal Reserve's mandate of promoting maximum employment and stable prices with a single price stability mandate. Supporters argue the dual mandate has been a distraction from the Fed's true mission of keeping inflation under control.
The New Fed Chair Was Just Confirmed — Here's What Changes for Your Credit Card Rate
As Kevin Warsh is confirmed as the new Fed Chair, debate intensifies over H.R. 5396, the Price Stability Act. Rep. Ayanna Pressley warned that stripping the employment mandate would 'devastate our economy,' while proponents argue it allows the Fed to prioritize crushing inflation without distraction.
Source Information
Document Type
Congressional Bill
Official Title
Price Stability Act of 2025
Data Sources
Sponsor
Cosponsors
(2)Analysis generated by AI. Always verify with official sources.