Federal reserve dual mandate

The current mandate of the Federal Reserve first made its way into the Federal Reserve Act in November 1977. The 1970s were plagued with high inflation and unemployment, a severe adverse macroeconomic condition known as stagflation, which motivated Congress to reform the original Act of 1913. With the intention of clarifying the Fed’s Board of Governors and the Federal Open Market Committee’s (FOMC) roles, Congress’ Reform Act explicitly identifies “the goals of maximum employment, stable prices, and moderate long-term interest rates.” It is these goals that have come to be known as the Fed’s “dual mandate.” —Read more at Investopedia. Johnston, Matthew. “Breaking Down the Federal Reserve’s Dual Mandate.” 25 Juner 2019.