119-HR-5396 Journalist Public Summary

Public Summary: Price Stability Act of 2025 (H.R. 5396)

Headline Summary: The bill would end the Fed’s “dual mandate” and make price stability its sole mission; it was approved in committee on May 13, 2026. (congress.gov)

What It Does: H.R. 5396 is a short amendment to Section 2A of the Federal Reserve Act that strikes “maximum employment, stable prices” and leaves “stable prices.” In plain terms, it would remove the Fed’s explicit obligation to promote maximum employment, converting today’s dual mandate into a single inflation‑control mandate. (congress.gov)

Why It Matters: The Fed’s current framework asks it to balance two goals—low, stable inflation and a strong job market—which can pull in opposite directions after big shocks. Changing the law would tell the central bank to prioritize inflation above all else, which supporters say brings clarity and discipline, while critics warn it could make the Fed less responsive to job losses during downturns. (stlouisfed.org)

Who’s For It:

• Sponsor Rep. French Hill (R‑AR) and cosponsors Rep. Marlin Stutzman (R‑IN) and Rep. Byron Donalds (R‑FL) say the Fed should focus squarely on containing inflation; Hill describes the bill as refocusing the Fed on its core mission of price stability. (financialservices.house.gov)
• Market‑oriented groups (e.g., Cato Institute, Competitive Enterprise Institute) argue a single mandate reduces policy drift and inflation risk compared with a dual mandate. (cato.org)
• Coverage at the bill’s introduction emphasized its aim to eliminate the employment objective so the Fed concentrates on inflation. (bankingjournal.aba.com)

Who’s Against It:

• Committee Democrats, led by Ranking Member Maxine Waters, opposed the change during markup and offered amendments; they have generally defended keeping employment in the mandate, arguing that sidelining jobs could worsen worker outcomes in recessions. (docs.house.gov)
• Some Federal Reserve officials contend the two goals reinforce each other over time and caution against abandoning either, reflecting a broader concern among critics that a single focus could reduce flexibility in crises. (atlantafed.org)

What’s Next: The committee ordered the bill reported favorably (30–21). Next up is potential consideration by the full House; to become law it would also need Senate approval and the President’s signature. (docs.house.gov)