ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Humphrey-Hawkins Act requires that the chairman of the Fed’s Board of Governors report twice each year to Congress about the Fed’s monetary policy. These sessions provide an opportunity for members of the House and Senate to express their views on monetary policy.

Detailed explanation-2: -The Full Employment and Balanced Growth Act of 1978 (the Humphrey-Hawkins Act) establishes price stability and full employment as national economic policy objectives.

Detailed explanation-3: -It was signed into law by President Jimmy Carter on October 27, 1978, and codified as 15 USC § 3101. The Act explicitly instructs the nation to strive toward four ultimate goals: full employment, growth in production, price stability, and balance of trade and budget.

Detailed explanation-4: -This is colloquilly known as the Humphrey-Hawkins testimony. It’s a biannual report delivered by the Fed Chair to the Congress. In it the Fed reports on its monetary policy and economic goals to the Congress.

Detailed explanation-5: -BLS defines full employment as an economy in which the unemployment rate equals the nonaccelerating inflation rate of unemployment (NAIRU), no cyclical unemployment exists, and GDP is at its potential.