The Federal Reserve currently has a dual mandate: (1) price stability; and (2) maximum sustainable employment. The original purpose of the Federal Reserve system, signed into law in 1913 by then President Woodrow Wilson, was to essentially provide effective management of the national currency and provide oversight of the banking system for nationwide financial stability. However, in 1977, the Federal Reserve Act was amended to include the second mandate regarding maximum sustainable employment. But what happens when the two mandates become a potential conflict of interest?
The mandate should be removed so that the Fed may focus only on price stability as the two mandates can often be a conflict of interest.
This page was last edited on Friday, 17 Apr 2020 at 12:37 UTC