The Congress established two key objectives for monetary policy - maximum employment and stable prices - in the Federal Reserve Act. These objectives are sometimes referred to as the Federal Reserve's dual mandate. The dual mandate is the long-run goal for monetary policy, and the Congress also established the Federal Reserve as an independent agency to help ensure that this monetary policy goal can be achieved. The independence of the Federal Reserve in conducting monetary policy is critical to guaranteeing that monetary policy decisions are free from political influence and focused exclusively on achieving the Federal Reserve's dual mandate. For example, a problem experienced in many countries without an independent central bank is that elected officials have put pressure on monetary policymakers to follow policies that boost the economy in the short run even if doing so would result in high levels of inflation later on. The Federal Reserve's dual mandate and the provisions for the independence of the Federal Reserve are two key factors that help guard against such outcomes in the United States.
So, let's see how the Fed has done with their dual mandate, to provide maximum employment and price stability over the last 20 years.
US economic policy hasn't been bad for everyone, though.
So much for households. Maybe they meant market price stability?
Nope. Perhaps their policies have not been as "free from political influence" as they would like you to believe. The Wealth Effect certainly doesn't hurt one's election chances.
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