4 ms·
> I don't agree with the premise (that the dual mandate set by Congress of maximum employment and 2% inflation should be the overarching goal of the Fed) What
by boulos 10y ago
> I don't agree with the premise (that the dual mandate set by Congress of maximum employment and 2% inflation should be the overarching goal of the Fed)
What would you propose instead? Anytime they seemingly target something else, they're (rightly, in my opinion) chastised for overstepping their mandate. Are you instead arguing they should have a different mandate? (If not, I don't think we agree on the definition of mandate ;))
- pdog 10y agoThe Fed should eliminate the objective of maximum employment from its mandate for monetary policy (automation will kill the notion of "maximum employment" anyways). They should also rethink their approach to inflation and raise the inflation target to 3%. Yields are likely to stay historically low due to the overwhelming demand for the ultimate safe haven asset, U.S. Treasury bonds.