The Fed Is Doing What It’s Been Told: John Authers

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The Federal Reserve is often described as having a double mandate — to keep both unemployment and inflation down. But that’s not quite accurate. The exact wording of the Federal Reserve Reform Act of 1977, the most recent instruction from Congress to the central bank, is that it:

Shall maintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of [1] maximum employment, [2] stable prices, and [3] moderate ...