Politico has an article out about the (possible) end of Bernanke’s tenure as Chairmen of the Federal Reserve. There isn’t much substance to the article, but I was struck by one passage:
Republicans, angered by what they view as the Fed’s attempts to meddle in Washington’s fiscal policymaking, have for years sought to abolish the dual mandate, repeatedly introducing bills that would force the central bank to focus solely on fighting inflation.
Sens. Bob Corker (R-Tenn.) and David Vitter (R-La.) authored such a bill earlier this year, and Rep. Marlin Stutzman (R-Ind.) introduced similar legislation in the House.
Here are the Federal Reserve inflation projections: I wonder if Republicans have considered the possibility that, with a single mandate for inflation only, FOMC policy could actually be more accommodative than it is currently?
|Inflation projections of Federal Reserve Governors and Reserve Bank presidents|
|June 2013 Meeting Projections||0.8 to 1.2||1.4 to 2.0||1.6 to 2.0|
|Mar 2013 Meeting Projections||1.3 to 1.7||1.5 to 2.0||1.7 to 2.0|
|Dec 2012 Meeting Projections||1.3 to 2.0||1.5 to 2.0||1.7 to 2.0|