The Fed, like any monetary policy maker, has numerous goals but focuses, at any time, on the goal ________.

Question

Quizplus · Accepted Answer

The Fed, as a monetary policy maker, focuses on the goal that is most in danger of not being achieved. This is because they aim to ensure that their policies prevent or mitigate potential risks to the economy. Choosing the goal that is most neglected or irrelevant would not be efficient in achieving their objectives, while choosing a goal based on political reasons would compromise their independence.

The Fed, Like Any Monetary Policy Maker, Has Numerous Goals