The Price Stability Act of 2026 removes the goal of "maximum employment" from the list of things the Federal Reserve is legally required to pursue. Since 1978, the Federal Reserve Act has directed the Federal Reserve's Board of Governors and its policy-setting committee (the Federal Open Market Committee) to promote maximum employment, stable prices, and moderate long-term interest rates, commonly called the Fed's "dual mandate." This one-sentence amendment strikes the employment goal, leaving the Fed's legal mandate focused on stable prices and moderate long-term interest rates. Because the Federal Reserve sets interest rates that affect mortgages, credit cards, business loans, and hiring nationwide, this change could shift how the central bank weighs inflation control against job growth when setting policy. The bill does not change who serves on the Federal Reserve or how it operates day to day; it changes the legal goals guiding its decisions.
Average Household Impact
- Federal Reserve employment mandate — Removed from law, leaving price stability as primary goal
Congressional Summary
Price Stability Act of 2026 This bill removes maximum employment as a goal of the monetary policy set by the Board of Governors of the Federal Reserve System and the Federal Open Market Committee.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Reported to House
- Action Date
- 2026-06-24
- Date Added
- 2026-07-11
- Source
- Congress.gov →
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