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The Fed has a dual mandate: price stability and maximal sustainable employment. Nothing about supporting the value of investments. https://www.chicagofed.org/r
by chalst 5y ago
The 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...