Does congress need to redefine Fed policy goals?

Philadelphia Fed president Plosser believes that the Fed's policy goals should be solely focused on price stability. He has gone as far as saying that Congress should redefine or provide more clarity on this issue. This is an interesting question that should be explored more closely. You have price stability, full employment and now macro-prudential goals. In a world of transparency, this high level clarity is critical. If the goal was just price stability, we would have more transparency on action. The Fed would still be loose because inflation is low, but there would be no mistake on what to watch.

Plosser also has focused on the idea that data not dates should be the driver for policy. If you want to provide clarity, tell the market what data is necessary for you you change policy. A date really tells you nothing. If data change, the date will change. If data do not change, the date may also change. Talking in terms of considerable time tells us nothing on what action should be taken