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Republican Bill Seeks Monetary Policy Rule for Fed

House Republicans proposed legislation to limit how the Federal Reserve makes monetary policy, a week before Chair Janet Yellen is scheduled to deliver her semiannual testimony to lawmakers.

The draft bill announced today in Washington would require the policy-setting Federal Open Market Committee to describe a strategy or rule for how it would adjust interest rates. Currently, the Fed doesn’t bind itself to a formula, preferring flexibility in an economy that continues to elude their forecasts of where it is headed.