As in, “Get The Fed Out” Act. (What were you thinking?) It seems that Fed
Chairman Chairwoman Janet Yellen is upset that Congress is considering passing something called the FORM Act (short for Fed Oversight Reform and Modernization Act). This law, if passed, would
require the central bank to tie interest rate policy to a mathematical rule.
Under the type of policy rule envisioned by lawmakers, the Fed would commit to moving interest rates up or down depending on the readings of economic indicators like the jobless rate and inflation.
In other words, the Fed wouldn’t be able to change interest rates just because they felt like it. It would also mean the end of Fed policies like Quantitative Easing and Zero Interest Rate Policy. The law also includes a provision to audit the Fed, something that has never been done in the 101 years of the Federal Reserve’s existence.
As QE and ZIRP have resulted in prices increasing between 33% and 50% since 2007, this law is a good first step in bringing the Fed under control. The optimal scenario would involve abolishing the Fed entirely.