Heritage Foundation's
Project 2025

Chapter 24 - Federal Reserve

• Eliminate the Federal Reserve's "dual mandate," focusing solely on price stability rather than also promoting maximum employment.
• Limit the Federal Reserve's lender-of-last-resort function.
• Wind down the Federal Reserve's balance sheet to pre-2008 levels.
• Limit future balance sheet expansions to only U.S. Treasuries.
• Stop paying interest on excess reserves.
• Consider transitioning to a free banking system.
• Explore implementing a commodity-backed monetary system (like a gold standard).
• Consider implementing a K-Percent Rule for money creation.
• If maintaining the current system, implement stricter inflation-targeting rules.
• Explore inflation and growth-targeting rules like the Taylor Rule or Nominal GDP Targeting.
• Have elected officials compel the Fed to specify its target range for inflation and inform the public of a concrete intended growth path.
• Focus regulatory activities solely on maintaining bank capital adequacy.
• Remove considerations of environmental, social, and governance (ESG) factors from the Fed's mandate.
• Curb the Fed's "excessive last-resort lending practices."
• Appoint a commission to explore the mission of the Federal Reserve, alternatives to the Federal Reserve system, and the nation's financial regulatory apparatus.
• Prevent the institution of a central bank digital currency (CBDC).