Question

What is the goal of the Fed’s Monetary Policy?

Answer 1

The goal of the Fed's Monetary Policy is to maintain sustainability; they want the unemployment rate to stay between 4% and 6%, and for the inflation rate to stay near 2%, and they do this by either increasing their funds rate to reduce inflation and increase unemployment, or by decreasing their funds rate in order to increase inflation and decrease unemployment.

Answer 2

to promote “maximum” sustainable output and employment and to promote “stable” prices.