The FEDs dual Mandate

By | July 13, 2019

“promote effectively the goals of maximum employment, stable prices, and moderate long term interest rates”  (Federal Reserve Bank of Richmod)

Well I might not be Shakespear but if you count the above these are three “mandates” and I have the English language to prove that, 2 commas and “and” meaning we counted 3 things.  But that is beside the point. Since Greenspan the FEDs had really one mandates, keep the people in charge happy.

That latter include people how have money and their support system, the government.  Although the government does things “for the people” every now and then, these things are usually tangential and only serve the “management” not labor.  When Bernanke adopted the “Green Shoots” policy and started the current “rally” that did not benefit the working person, but rather asset owners.   And the FEDs insistence on adopting faulty standards to measure inflation also another way of cheating the working person.  And when the FEDs target inflation, as has been stated over an over by Powell, they is price destabilization.  And for the FEDs to control the long term interest rate, they have to have to have QE and that is also rubbing the working person from their buying power.

Leave a Reply