Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Bill Introduced To End The Fed's Dual Mandate - Goal Of A Petition?

Saturday, March 10, 2012 - 10:06 AM
From Reuters:
The bill by Representative Kevin Brady would require the Fed to focus solely on price stability, as is the practice for most major central banks around the world. The Fed's current mandate calls on the U.S. central bank to ensure full employment along with low and stable inflation.

More info on this bill is at Rep. Brady's House webpage.

I think this might be what we were looking for in a petition. It's something reasonable that could prevent the Fed from keeping zero interest rates for another decade with the unrealistic hope that zero interest rates will reduce the unemployment rate.

Let me know what you think of a petition supporting this bill. If you like the idea of this type of petition, please suggest ideas of what to include in the petition letter. You can see an example of an online petition that sought to bring back paper savings bonds at this change.org page.
13
Ken TuminKen Tumin5,467 posts since
Nov 29, 2009
Rep Points: 124,994
1. Saturday, March 10, 2012 - 10:37 AM
Ken:  I think it is ridiculous for Congress to think the Fed's "zero interest rates" will help our economy and the unemployment problem.  They just have to look at the results.  I am for any Petition which will get the Fed to raise interest rates.  They want people to spend yet they keep saving rates so low the retirees are afraid to spend or don't bring in enough interest income to be able to spend more.  Results show that "zero interest rates" are NOT the way to go!  The Fed and Bernanke admit in that article they will do whatever Congress tells them to do.  I feel we need to make sure we direct any Petition about this problem to Rep. Brady and Congress. 
11
ApacheApache43 posts since
Dec 5, 2011
Rep Points: 565
2. Sunday, March 11, 2012 - 8:55 PM
I would support a petition supporting the Brady Bill. It is clear that the unemployment mandate is not an appropriate function of the Fed. The decline in the dollar in recent years would indicate the Fed hasn't placed enough emphasis on price stability. I would think that the Fed needs to pay attention to real interest rates, and if inflation is exceeding short term interest rates, this would encourage a continuing outflow of dollars to other currencies that have more attractive yields, leading to an inexorably downward pressure on the value of the dollar. A declining dollar is infationary and, ultimately, problematic for our economy. So, I would think supporting this measure should definitely be part of any petition.
8
loulou541 posts since
Aug 3, 2010
Rep Points: 3,386
Reply