3 ms·

Isn’t that the charge of the federal reserve? I think this is what he is required to do statutorily.

nielsbot 1y ago
What he is doing is counter to the Fed charter, but if you're pro-Capital, you like some unemployment because it disciplines Labor. > The chair's main responsibility is to carry out the mandate of the Fed, which is to promote the goals of maximum employment, stable prices, and moderate long-term interest rates. (per Investopedia https://www.investopedia.com/articles/investing/082415/what-are-federal-reserve-chairmans-responsibilities.asp https://www.investopedia.com/articles/investing/082415/what-...)
- ytpete 1y ago
  Isn't the idea that maximum employment, stable prices, and moderate long-term interest rates are somewhat in tension with each other though? Which would mean the mandate is to balance those three things – e.g. maximize employment to the extent possible while maintaining stable prices and moderate interest rates.
- JumpCrisscross 1y ago
  > The chair's main responsibility is to carry out the mandate of the Fed, which is to promote the goals of maximum employment, stable prices, and moderate long-term interest rates You’re correctly quoting your source. But this is crap, as their source [1] makes no reference to “moderate long-term interest rates”. The Fed is mandated to promote “maximum employment” and “stable prices” [2]. (It defines the former as “the highest level of employment or lowest level of unemployment that the economy can sustain while maintaining a stable inflation rate.”) If inflation is unstable, the economy is above maximum employment. [1] https://www.federalreserve.gov/paymentsystems/coin_about.htm https://www.federalreserve.gov/paymentsystems/coin_about.htm [2] https://www.federalreserve.gov/aboutthefed/fedexplained/monetary-policy.htm https://www.federalreserve.gov/aboutthefed/fedexplained/mone...
chb 1y ago
An astute and accurate observation. However, there is no numeric target set in the mandate you allude to: "The Federal Reserve was created by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. In 1977, Congress amended the Federal Reserve Act (FRA) to provide greater clarity about the goals of monetary policy. The amended FRA directs the Board of Governors and the FOMC to conduct monetary policy “so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” [https://www.federalreserve.gov/aboutthefed/files/the-fed-explained.pdf https://www.federalreserve.gov/aboutthefed/files/the-fed-exp...]

What he is doing is counter to the Fed charter, but if you're pro-Capital, you like some unemployment because it disciplines Labor. > The chair's main responsibility is to carry out the mandate of the Fed, which is to promote the goals of maximum employment, stable prices, and moderate long-term interest rates. (per Investopedia https://www.investopedia.com/articles/investing/082415/what-are-federal-reserve-chairmans-responsibilities.asp https://www.investopedia.com/articles/investing/082415/what-...)

ytpete 1y ago
Isn't the idea that maximum employment, stable prices, and moderate long-term interest rates are somewhat in tension with each other though? Which would mean the mandate is to balance those three things – e.g. maximize employment to the extent possible while maintaining stable prices and moderate interest rates.
JumpCrisscross 1y ago
> The chair's main responsibility is to carry out the mandate of the Fed, which is to promote the goals of maximum employment, stable prices, and moderate long-term interest rates You’re correctly quoting your source. But this is crap, as their source [1] makes no reference to “moderate long-term interest rates”. The Fed is mandated to promote “maximum employment” and “stable prices” [2]. (It defines the former as “the highest level of employment or lowest level of unemployment that the economy can sustain while maintaining a stable inflation rate.”) If inflation is unstable, the economy is above maximum employment. [1] https://www.federalreserve.gov/paymentsystems/coin_about.htm https://www.federalreserve.gov/paymentsystems/coin_about.htm [2] https://www.federalreserve.gov/aboutthefed/fedexplained/monetary-policy.htm https://www.federalreserve.gov/aboutthefed/fedexplained/mone...

chb 1y ago

An astute and accurate observation. However, there is no numeric target set in the mandate you allude to: "The Federal Reserve was created by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. In 1977, Congress amended the Federal Reserve Act (FRA) to provide greater clarity about the goals of monetary policy. The amended FRA directs the Board of Governors and the FOMC to conduct monetary policy “so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” [https://www.federalreserve.gov/aboutthefed/files/the-fed-explained.pdf https://www.federalreserve.gov/aboutthefed/files/the-fed-exp...]