-
Why the Federal Reserve’s dual mandate may seem impossible
video The Federal Reserve enacts monetary policies to stabilize prices and maximize employment in the U.S. economy. These dueling goals are known as the dual mandate. The Fed has to strike a delicate balance to ensure low, steady prices while setting a course for an economy that encourages everyone to get a job who wants one. But these goals may contradict each other. “There’s an inherent conflict in trying to keep prices down,” Danielle DiMartino Booth, founder and CEO of QI Research, told CNBC. “It’s impossible to maximize employment and not ignite price pressures.” For example, if prices are too hot, ... (full story)