Price Stability and Inflation Targeting Act of 2008 - Declares that the primary and overriding goal of the Board of Governors of the Federal Reserve System and the Federal Open Market Committee with regard to monetary policy shall be the achievement of price stability.
Authorizes the Board and the Committee to suspend such goal if the Committee, by a majority vote, and the President jointly determine such suspension necessary due to war or an economic emergency.
Requires the Board and the Committee to: (1) establish a definition of the goal of price stability; (2) implement such definition through inflation targets; and (3) specify a timeframe for achieving such goal.
Directs the Board to determine in advance what action it will take if the goal of fully achieving price stability is not met within the timeframe established by the Board and the Committee.