3min chapter

Let's Appreciate cover image

What is the Federal Reserve Doing?

Let's Appreciate

CHAPTER

The Fed's Predictions About Market Anticipation

The Fed has a dual mandate of price stability and maximum employment. Right now they're going after price stability in order to have maximum employment later on. The failure of tightening enough is riskier than overtightening because they can always slow down again. Jerome Powell was told that the market had reacted positively to the news. It's very premature to think about pausing.

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