ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Federal Reserve System has been given a dual mandate-pursuing the economic goals of maximum employment and price stability. It does this by using a variety of policy tools to manage financial conditions that encourage progress toward its dual mandate objectives-in other words, conducting monetary policy.

Detailed explanation-2: -Congress explicitly stated the Fed’s goals should be “maximum employment, stable prices, and moderate long-term interest rates.” It is these goals that came to be known as the Fed’s “dual mandate” and remain today.

Detailed explanation-3: -The two parts of the Fed’s dual mandate are starting to duel with each other. At its core, the Federal Reserve has two main jobs: keeping inflation low and making sure maximum number of people are employed in America. This is known as the Fed’s “dual mandate."

Detailed explanation-4: -The Fed’s goals are often described as a “dual mandate” to achieve stable prices and also maximum employment. The goal of stable prices means keeping the inflation rate low and predictable. Success in achieving this goal also ensures “moderate long-term interest rates."