In a recent speech, Fed Chair Janet Yellen sent a signal that the Fed might be considering expanding its mission to include reducing economic inequality. Seeing as the Fed already has a dual mandate, this would amount to a triple mandate. Over at the American Spectator, Iain Murray and I explain why that wouldn’t work as planned, and instead offer a humbler vision for the Fed:
If there is a guiding principle to effective Fed policy, it is that simplicity is beautiful. A complex, contradictory, unpredictable, and unstable triple mandate does the poor no favors. If the Fed seeks to maintain a stable, predictable, and honest price system as its sole monetary policy objective, it will do more to lift people out of poverty than any double or triple mandate.
Read the whole thing here.