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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 responsi

• 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...