The Price Stability Act of 2026 would amend Section 2A of the Federal Reserve Act to strike the words “maximum employment” from the Federal Reserve’s statutory goals and leave “stable prices” as the stated focus. In practical terms, it would narrow the formal mandate of the Board of Governors and the Federal Open Market Committee, the two bodies that set U.S. monetary policy. Because the Federal Reserve influences interest rates, inflation, borrowing costs, and job conditions, the change could affect households, workers, businesses, and investors across the economy—though indirectly rather than through a direct benefit program or tax change.
What This Bill Does
- Section 2A of the Federal Reserve Act would be changed to remove “maximum employment.”
- The Fed would be directed to focus on “stable prices” instead of the current dual mandate.
- The bill applies to the Board of Governors and the Federal Open Market Committee.
- It is titled the “Price Stability Act of 2026.”
- The House Financial Services Committee reported the bill with an amendment on June 24, 2026.
Who This Bill Affects
For a typical American, this bill would not change any benefit eligibility or create a direct payment, but it could matter indirectly through interest rates, inflation, and job conditions if the Federal Reserve responds differently under a single-price-stability mandate. That means the effect on your monthly mortgage, auto loan, savings returns, and job market conditions could change over time, but only through the Fed’s policy decisions rather than a direct program change.
See how this bill affects you — sign in for a personalized analysisWho Supports & Opposes This
- Inflation-conscious households and savers They may argue that a clearer price-stability mandate would help keep inflation under control, protecting paychecks, savings, and fixed incomes from being eroded by rising prices.
- Businesses sensitive to borrowing costs They may say a narrower mandate would reduce policy uncertainty and encourage a steadier low-inflation environment, which can make planning, lending, and long-term investment easier.
- Monetary-policy hawks They may believe the Fed should not be tasked with balancing too many goals at once and that stable prices should be the central bank’s primary statutory objective.
- Workers and labor advocates They may argue that removing the employment mandate would weaken the Fed’s obligation to consider job losses during tightening cycles, increasing the risk of higher unemployment.
- Borrowers and first-time homebuyers They may worry that a stronger anti-inflation focus could keep interest rates higher for longer, raising the cost of mortgages, auto loans, and business credit.
- Economists who favor the dual mandate They may contend that the current law rightly forces the Fed to balance inflation control with labor-market health, and that stripping out employment could create a more one-sided policy framework.
Key Implications
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““striking ‘maximum employment, stable prices,’ and inserting ‘stable prices’””
This is the core legal change: the Fed would no longer be explicitly told to pursue maximum employment in Section 2A, leaving price stability as the named objective.
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““the Board of Governors... and the Federal Open Market Committee””
Both the Fed’s governing board and its main policy-setting committee are covered, so the change would apply to the institutions that steer interest-rate policy.
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““To amend the Federal Reserve Act””
The bill does not create a new program or spending initiative; it changes the statute that frames the Federal Reserve’s core mission.
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““Reported with an amendment””
The House committee did not advance the introduced text unchanged. It reported an amended version, which can matter for what ultimately reaches the floor.
Official Source & Bill Facts
BillBoard checks this page against public Congress.gov metadata, then adds plain-English analysis where available.
- Bill
- HR 5396
- Congress
- 119th Congress
- Official title
- Price Stability Act of 2026
- Policy area
- Economy & Finance
- Latest action
- Placed on the Union Calendar, Calendar No. 616. (June 24, 2026)
- Last updated
- June 25, 2026
Latest Status
June 24, 2026
Placed on the Union Calendar, Calendar No. 616.
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Ask AI about this billData sourced from api.congress.gov.