24. Federal Reserve · Notable · Needs Congress
Adopt a K-Percent Rule for money creation
Printed page 738 24. Federal Reserve
“K-Percent Rule. Under this rule, proposed by Milton Friedman in 1960, the Federal Reserve would create money at a fixed rate—say 3 percent per year.”
What has happened
- Not started
No K-Percent Rule was adopted or proposed. The Federal Open Market Committee's Statement on Longer-Run Goals and Monetary Policy Strategy, revised in August 2025 and reaffirmed effective January 27, 2026, states that "the Committee's primary means of adjusting the stance of monetary policy is through changes in the target range for the federal funds rate" — a discretionary interest-rate framework, not a fixed money-growth rule. A Federal Register full-text search for the quoted phrase "K-Percent Rule" since 2025-01-20 returns zero documents, and no bill in the 119th Congress would impose a monetary growth rule.
No action found yet. This entry is the starting point, not a finding.
Research log
What was searched, and what didn’t count as evidence
Research notes
Cluster negative search shared with #2022 and #2024, recorded in docs/research/ch-24.md. All three are asks that Congress or the Committee adopt a rule; the 2025 framework review was the moment at which any of them could have been adopted, and none was.
- Action
- create
- Object
- K-Percent monetary growth rule
- ID
- 2021