The Council of Economic Advisers, an agency within the Executive Office
of the President, is charged with offering the President objective
economic advice on the formulation of both domestic and international
economic policy. The Council bases its recommendations and analysis on
economic research and empirical evidence, using the best data available
to support the President in setting our nation's economic policy.
The
Council of Economic Advisers was established by Congress in the
Employment Act of 1946. The portion of the bill that authorizes the
Council is presented below:
“There is hereby created in the Executive Office of the President a
Council of Economic Advisers (hereinafter called the “Council”). The
Council shall be composed of three members who shall be appointed by the
President, by and with the advice and consent of the Senate, and each
of whom shall be a person who, as a result of his training, experience,
and attainments, is exceptionally qualified to analyze and interpret
economic developments, to appraise programs and activities of the
Government in the light of the policy declared in section 2, and to
formulate and recommend national economic policy to promote employment,
production, and purchasing power under free competitive enterprise. The
President shall designate one of the members of the Council as Chairman.
It shall be the duty and function of the Council–
to assist and advise the President in the preparation of the Economic Report;
to gather timely and authoritative information concerning economic
developments and economic trends, both current and prospective, to
analyze and interpret such information in the light of the policy
declared in section 2 for the purpose of determining whether such
developments and trends are interfering, or are likely to interfere,
with the achievement of such policy, and to compile and submit to the
President studies relating to such developments and trends;
to appraise the various programs and activities of the Federal
Government in the light of the policy declared in section 2 for the
purpose of determining the extent to which such programs and activities
are contributing, and the extent to which they are not contributing, to
the achievement of such policy, and to make recommendations to the
President with respect thereto;
to develop and recommend to the President national economic policies
to foster and promote free competitive enterprise, to avoid economic
fluctuations or to diminish the effects thereof, and to maintain
employment, production, and purchasing power;
to make and furnish such studies, reports thereon, and
recommendations with respect to matters of Federal economic policy and
legislation as the President may request.”
