One problem for the Federal Reserve regarding setting policy stems from the fact that:

Question

Quizplus · Accepted Answer

The Federal Reserve has multiple goals, such as controlling inflation, achieving price stability, maximizing employment, and promoting economic growth. However, these goals may sometimes conflict with each other. For example, pursuing maximum employment may lead to higher inflation, while controlling inflation may lead to a decrease in employment. This creates a challenge for the Federal Reserve in setting policy that achieves all its goals at the same time.

One Problem for the Federal Reserve Regarding Setting Policy Stems