Maximum employment was not added as a Federal Reserve goal until the Humphrey Hawkins amendments to the Federal Reserve Act in 1978. The three goals, inflation, interest rates and employment in effect allows the Federal Reserve to emphasize whichever it chooses.
I’m a “nominal GDP targeting” guy. Aim for 5% nominal growth and then let the market and fiscal policy sort out whether that manifests as 3% inflation and 2% real growth, or whatever other combo.
Maximum employment was not added as a Federal Reserve goal until the Humphrey Hawkins amendments to the Federal Reserve Act in 1978. The three goals, inflation, interest rates and employment in effect allows the Federal Reserve to emphasize whichever it chooses.
I’m a “nominal GDP targeting” guy. Aim for 5% nominal growth and then let the market and fiscal policy sort out whether that manifests as 3% inflation and 2% real growth, or whatever other combo.