The House Committee on Financial Services advanced a legislative package Thursday consisting of six individual bills designed to fundamentally alter federal financial regulation and central bank policy.
The markup sessions, which began on Wednesday, resulted in the passage of H.R. 5396, a bill that eliminates the Federal Reserve’s long-standing dual mandate. Historically, the central bank was legally obligated to balance maximum employment with stable prices.
The newly approved text strips away the employment objective, replacing it with a singular mandate focused strictly on maintaining price stability to curb domestic inflation.
This legislative push coincided with a major leadership change at the central bank. On Wednesday, the U.S. Senate voted to confirm Kevin Warsh as the next Chairman of the Federal Reserve. Warsh, who faced significant pressure from the Trump administration to cut interest rates, has publicly advocated for reducing the Fed’s $6.6 trillion balance sheet.
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Following the confirmation and the subsequent committee vote on May 14, 2026, Committee Chairman French Hill issued a statement backing the policy direction.
“Yesterday, we advanced legislation that reflects the Committee’s core mission of promoting financial innovation, strengthening consumer protections, and ensuring our regulatory framework keeps pace with a rapidly evolving financial landscape,” Hill stated.
Aside from monetary policy restructuring, the committee approved technology-focused measures. H.R. 4801, the Unleashing AI Innovation in Financial Services Act, passed to force regulators to launch dedicated artificial intelligence labs where private firms can test financial algorithms under temporary regulatory waivers.
Furthermore, the committee voted 52-0 to pass H.R. 2152, the Artificial Intelligence Practices, Logistics, Actions, and Necessities (AI PLAN) Act. This bipartisan bill orders a joint federal agency investigation into the economic and national security threats posed by artificial intelligence tools deployed in financial fraud.
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