What are the goals of monetary policy?
The Federal Reserve Act lays out the goals of monetary policy. The act specifies that, in conducting monetary policy, the Federal Reserve System and the Federal Open Market Committee should seek “to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates.” For more information on the goals of monetary policy, go to www.federalreserve.gov/pf/pdf/pf_2.pdf.
