Date of Original Version



Response or Comment

Abstract or Description

The resolution under consideration is a forward and far-reaching step that, if properly interpreted and applied,will contribute to increased economic stability and lower inflation. Monetary policy must make a greater contribution to the maintenance of full employment and stable prices. The resolution expresses the intent of Congress to exercise, more fully than in the past, the constitutional powers that Congress has delegated to the Federal Reserve System. Equally, the resolution replaces the vague and archaic statement of purpose in the Federal Reserve Act with directions that commit the Congress and the monetary policy of the country to the goals of maximum employment and price stability. These goals have been neglected increasingly in recent years,despite affirmations by Presidents, Many members of Congress, and the recent chairmen of the Board of Governors of the Federal Reserve System.


Testimony prepared for the Senate Committee on Banking, Housing and Urban Affairs February 26, 1975