Price Stability Act of 2026
Key claim: The Price Stability Act of 2026 (HR5396) removes maximum employment as a statutory goal of Federal Reserve and FOMC monetary policy, leaving price stability as the sole mandate.
Abstract
(HR5396 · 119th Congress) 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. Latest action (2026-06-24): Placed on the Union Calendar, Calendar No. 616.
Why this matters
Eliminating the maximum-employment leg of the Federal Reserve’s dual mandate would be one of the most consequential rewrites of U.S. monetary-policy law since the Humphrey-Hawkins framework, reorienting FOMC decision-making toward inflation alone and likely reducing tolerance for accommodative policy during labor-market downturns. For banks, investors, and consumers, this would change how the Fed weighs unemployment against inflation in setting rates, with downstream effects on credit conditions, asset prices, and recession response. The bill has been placed on the Union Calendar but is not enacted; framing remains neutral pending further legislative action.