Reading Between the Lines of the Fed's Interest Rate Stance The Federal Reserve's dual mandate to promote maximum employment and price stability is well established, but its implications for interest rate decisions are less clear cut.
The Fed's decision making process involves a complex interplay between economic indicators, inflation expectations, and non verbal cues in its statements.
Understanding the Fed's Dual Mandate The Federal Reserve's dual mandate, enshrined in law, requires it to balance two competing goals: maximum employment and price stability.