Why The U.S. Is Failing At Its Economic Goals

The Fed has a dual mandate to strike a delicate balance to ensure low, steady prices and promote an economy that allows everyone to get a job who wants one. But, the mandate’s targets can contradict each other. Some economists think the central bank should consider a single target while others argue it has created a more stable economy. “There’s an inherent conflict in trying to keep prices down,” Danielle DiMartino Booth, founder and CEO of QI Research, told CNBC. “It’s impossible to maximize employment and not ignite price pressures.”

Here’s how the Fed tries to strike a near impossible balance to promote both parts of the dual mandate.

Chapters:
00:00 — Introduction
01:45 — Dual Mandate
04:05 — Balancing Act
06:40 — Single Mandate

Produced by: Andrea Miller
Edited by: Mark Licea
Animation: Andrea Schmitz
Supervising Producer: Lindsey Jacobson

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Why The U.S. Is Failing At Its Economic Goals