Question

The Fed's monetary policy decisions are guided by a "dual mandate"

given to the central bank by Congress. What two goals make up the
dual mandate?

Answer 1

The Federal Reserve's dual mandate consists of price stability and maximum employment.

Step-by-step explanation:

The dual mandate refers to the two goals that make up the Federal Reserve's monetary policy decisions. These goals are price stability and maximum employment.

Price stability refers to keeping inflation under control and maintaining a stable price level in the economy. The Federal Reserve aims to keep inflation within acceptable limits to ensure the purchasing power of money remains relatively stable.

Maximum employment refers to achieving a level of employment where most people who want to work are able to find employment. The goal is to minimize unemployment and promote economic growth and overall well-being.