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The Federal Reserve is, without a doubt, one of our most important economic institutions.
The U.S. central bank’s primary mission is to maintain full employment and keep inflation low. But more broadly, the Fed’s job is to create an economy in which people can have confidence.
This is primarily achieved through monetary policy: the act of adding or removing money from the economy.
When economic growth starts to slow and unemployment rises, the Fed can pump in more money. When the economy overheats and inflation becomes a problem, the Fed can remove funds.
Looks simple, right?
One of the Fed’s most important and difficult jobs is making tough decisions when these responsibilities conflict.
Today, we bring you two stories of the Federal Reserve. We look back at the creation of the Federal Reserve and the story of how the chairman of the Federal Reserve was forced to face one of the greatest dilemmas in the history of central banks.
concept:
- Dual Mission
- Price stability
- Maximizing employment
- Monetary Policy
music: Thrash Reggae, boat, Mind Games & Beach Vacation
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