Congressional mandate to promote maximum employment and price
stability, the current picture is plain to see: The labor market is
extremely tight, and inflation is much too high. Against this
backdrop, today the FOMC raised its policy interest
rate by 1/2 percentage point and anticipates that
ongoing increases in the target rate for the federal funds rate
will be appropriate. In addition, we are beginning the process of
significantly reducing the size of our balance sheet. I’ll have
more to say about today’s monetary policy actions after briefly
reviewing economic developments.”
- From The Standpoint Of Our Congressional Mandate To Promote Maximum Employment And Price Stability The Current Picture 1 (251.16 KiB) Viewed 33 times
rate successfully achieve the Fed’s dual mandate that “stabilize
unemployment rate subject to keeping inflation low”? Why? Why
not? Justify your answer by the graphs.
FRED Unemployment Rate Consumer Price Index for All Urban Consumers: All items in U.S. City Average FRED . Unemployment Rate (left), Consumer Price Index for All Urban Consumers: All items in ULS.City Average (bottom), Apr 2012 Mar 2022 25 12.5 15 100 Porcent, Change from Your Ago, Index 1982-1984-100 10 Percent 5.0 2014 2016 2013 2020 2022 2.5 17.5 225 10 12.5 15 Change from Yr Agn, Index 1982-1984=100 Source: U.S. Bureau of Labor Statistics fred.stlouisled.org Source: U.S. Bureau of Labor Statistics Panel (A). Line Plots for Unemployment rate and annual growth rate of CPI Panel (B). Scatterplot for Unemployment rate and annual growth rate of CPI Curreney in Circulation/Total Checkable Dupealta (DISCONTINUED) Excess Reserves of Depository Institutions (DISCONTINUEDMTatal Cheakable Deposits (DISCONTINUED) 1000 FRED {M1 Jan 2015-100 Monetary Base: Currency In Circulation'1000), Jan 2015-100 FREDA 800 70 700 600 500 1.0 Index of (Balore of Dollar) Index of (Mil of $10001 Riool of $. MISA. 1000 09 100 04 са 0.7 200 0.5 150 04 Jul 2017 Jan 2018 Jul 2010 Jan 2019 Ju 2018 Jan 2009 Jul 2010 Jan 2011 U 2021 Jas 2002 Jul 2016 Jan 2017 U 2017 Jan 2016 Jul 2018 Jon 2011 Jul 2019 Jan 2020 Jul 2020 -2... fred.stouisted.org Source: Board of Governors of the Federal Reserve System (US) fred.stouisted.org Sources: Board of Governors: Si. Louis Fed Panel (C). Line Plots for M1 money supply and the Fed's monetary base Panel (D). Line plots for Currency ratio and Excess Reserve ratio