Political Quotes

“I am here today to introduce the Federal Reserve Mandate Act of 2013 in an effort to begin returning our country to the right place in monetary policy. Senator Vitter is joining me in this effort. The objective of our bill is simple. Our Central Bank, like other Central Banks around the world, should be focused on creating an environment of price stability. This should be the guiding principle of monetary policy decisions. This is neither a radical nor a new idea. Most economists argue that the proper role of the Central Bank is to serve as a lender of last resort in a time of crisis, to supply payment distribution and clearing mechanisms, and to manage the money supply so that inflation stays in check. Managing unemployment is a completely separate task and not appropriate for the blunt tools of monetary policy. That is why almost every developed country's Central Bank has as its mandate the maintenance of price stability. In other words, we are an outlier. This is not to say that a focus on price stability means the Fed is abandoning unemployment. In fact, just the opposite is true. Monetary policy can and should create an environment where jobs can grow and thrive by giving the economy certainty that prices will remain stable over the long term. We have strayed a long way from traditional Central Bank actions. We have lost sight of the proper role of monetary policy in our economy.…”