The Federal Reserve only truly had a mandate to reduce inflation beginning in the

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The Federal Reserve's mandate to reduce inflation began in response to the high peacetime inflation of the late 1970s. This is often referred to as the Volcker Shock, as then Federal Reserve Chairman Paul Volcker implemented policies aimed at reducing inflation, even if that meant causing a short-term recession. Prior to this, the Federal Reserve's primary focus was on maintaining full employment, rather than controlling inflation.

The Federal Reserve Only Truly Had a Mandate to Reduce