As three Republican members of the U.S. House Financial Services Committee proposed the “Price Stability Act,” it happened to coincide with Wash’s largely confirmed that he will succeed Powell as Chair of the Federal Reserve. The bill is designed to abolish the Fed’s dual mandate of “maximum employment + inflation,” shifting instead to focus solely on price stability—namely inflation. While in the short term, passage of the bill in a high-inflation environment might not be conducive to rate cuts, in light of Wash’s tendency to adjust the path for inflation observation, over the long run it could pave the way for him to initiate rate cuts based only on the rationale of price stability once inflation eases, without needing to consider whether employment is overheating. The timing of the proposal overlaps closely with Wash’s imminent assumption of office, suggesting it is unlikely to be a coincidence and that it is probably laying institutional groundwork for a more accommodative interest-rate policy under Wash in the future. However, the bill is still at the proposal stage, and whether it will pass into law remains uncertain. #Gate广场五月交易分享