Federal Reserve Reform Act

Federal Reserve Reform Act (1977)

1) Link to the Text of the Act
Read the statute (12 U.S.C. §§ 225a, 263, 610)

2) Why It Was Done
Passed in the wake of the 1970s stagflation crisis, the Act clarified the Federal Reserve’s responsibilities, strengthened oversight, and set policy goals for monetary stability, employment, and growth.

3) Pre-existing Law or Constitutional Rights
Before this Act, the Federal Reserve’s mandate was less explicit. This law formalized a “dual mandate” of employment and price stability under Congress’s constitutional power over money.

Acts

Full Employment and Balanced Growth Act (Humphrey–Hawkins Act)

Full Employment and Balanced Growth Act (Humphrey–Hawkins Act, 1978)

1) Link to the Text of the Act
Read the statute (15 U.S.C. §§ 3101–3151)

2) Why It Was Done
Enacted during the economic turmoil of the 1970s (stagflation, high unemployment, and inflation), the Act built on the Employment Act of 1946 by setting explicit goals for reducing unemployment and inflation, while requiring the Federal Reserve to coordinate with Congress.

3) Pre-existing Law or Constitutional Rights
The Employment Act of 1946 established a general commitment to economic stability. Humphrey–Hawkins expanded this by imposing numerical targets and mandatory reporting, grounded in Congress’s Commerce Clause powers.