Interest and Inflation Reduction Act

Interest and Inflation Reduction Act - Amends the Budget and Accounting Act, 1921, to repeal the authority of the President to recommend borrowing by the Federal Government as a means to finance an anticipated deficit in the President's proposed budget.

Amends the Congressional Budget Act of 1974 to prohibit the adoption of any concurrent resolution on the budget which would increase the level of the public debt. Repeals Rule XLIX of the Rules of the House of Representatives which provides for the establishment of the public debt limit within the congressional budget process. Prohibits the consideration of any legislative measure which would violate the limit on the public debt imposed by the Second Liberty Bond Act. Allows such measures during a national emergency. Makes permanent the existing temporary limit on the public debt of $479,000,000,000.

Amends the Federal Reserve Act to require the Federal Open Market Committee to conduct its open-market operations for the sole purpose of checking inflation by fostering a steady growth in the money supply approximately equal to the long-run growth in real national product. Prohibits the Committee and any Federal Reserve bank from conducting its purchases and sales of commercial paper with a view toward stabilizing the market for United States securities or accommodating the borrowing of the United States Treasury. Prohibits the Board of Governors of the Federal Reserve System from deviating from the objectives for long-run growth in monetary and credit aggregates, annually reported to Congress, in order to affect market conditions for United States Treasury securities (particularly their yield or discount price).