3 ms·
> and the Fed has no mandate to prop up stocks. Not true in the least anymore - retirement savings for a large percentage of our population are tied up in stoc
by snuxoll 5y ago
> and the Fed has no mandate to prop up stocks.
Not true in the least anymore - retirement savings for a large percentage of our population are tied up in stocks thanks to the death of the pension. Asset and securities prices as a whole are a large concern for the fed when changing policy, as a result.
- chalst 5y agoThe Fed has a dual mandate: price stability and maximal sustainable employment. Nothing about supporting the value of investments. https://www.chicagofed.org/research/dual-mandate/dual-mandate https://www.chicagofed.org/research/dual-mandate/dual-mandat...
- thow-58d4e8b 5y agoFED actually has three mandates, one of them almost never mentioned: * employment * price level * moderate long term interest rates
- chalst 5y agoThe requirement to pursue moderate long-term interest rates is usually seen as part of price stability, since the level of long-term interest rates is determined by inflation expectations. Cf. https://www.federalreserve.gov/faqs/what-economic-goals-does-federal-reserve-seek-to-achieve-through-monetary-policy.htm https://www.federalreserve.gov/faqs/what-economic-goals-does...