Section 4 · The Economy
🏦Ch. 24 — Federal Reserve
Fed · 7 tracked
Eliminate the Fed’s dual mandate; confine it to price stability/stable money
Proposed
Mandate argues Congress should limit the Fed’s mandate to stable money/price stability alone, eliminating the dual mandate’s full-employment goal and resisting ESG/equity add-ons.
Limit lender-of-last-resort function to reduce bailout moral hazard
Proposed
Mandate would tightly limit LOLR so banks behave more prudently, with long lead time, arguing standing bailout offers encourage reckless lending and crises.
Wind down Fed balance sheet; ban MBS/corporate/muni purchases; Treasuries-only QE
Proposed
Mandate would have Congress limit balance-sheet purchases, wind assets toward pre-2008 levels, prohibit picking winners via MBS/corporate/muni debt, and preclude future MBS purchases while maturing/selling existing holdings.
End interest on excess reserves; return to pre-2008 open-market-operations regime
Proposed
Mandate says the Fed should immediately stop paying interest on excess reserves (framed as printing money then borrowing it back from banks) and Congress should restore the pre-2008 open-market-operations system.
Advance rule-based money (K-percent/NGDP/Taylor) or free banking; appoint reform commission
Proposed
Mandate offers a reform menu from free banking/abolishing the Fed’s monetary role, to commodity money, to K-percent, NGDP, or Taylor rules, and urges a commission on Fed mission, alternatives, and financial regulation—preferring rules that remove discretionary steering.
Prevent a U.S. central bank digital currency
Proposed
Mandate’s minimum reforms include preventing a CBDC, warning of unprecedented surveillance/control of transactions without benefits beyond existing technologies.
Clamp down on Fed ESG incorporation via financial-stability authorities
Proposed
Mandate says elected officials must stop the Fed from incorporating environmental, social, and governance factors into its mandate, including by amending its financial stability mandate, and focus regulation on bank capital adequacy.