The law I am referring to is the Fed’s dual mandate. This is from the newest Fed minutes:
almost all participants continued to anticipate that inflation over the medium-term would run at or below the 2 percent rate that the Committee judges to be most consistent with its statutory mandate. In one participant’s judgment, appropriate monetary policy would lead to inflation modestly greater than 2 percent for a time in order to bring unemployment down somewhat faster.
I presume the others believe the Fed should continue to aim for 2% inflation despite high unemployment, which would mean they are adhering to a single mandate, not a dual mandate.
But there is also good news:
Several participants commented that it would be desirable to explore the possibility of developing new tools to promote more accommodative financial conditions and thereby support a stronger economic recovery.
Perhaps they could read the old Bernanke papers on Japan. They are full of new ideas the Fed hasn’t yet tried.