The Fed’s job is not to fix bad fiscal policy - and the record tariffs being put in place by President Trump are bad fiscal policy.
The Fed has a dual mandate from Congress: 1/ Keep inflation low and stable (typically targeting around 2%) and 2/ maximize employment. These goals can sometimes conflict, so the Fed uses monetary policy to strike a balance. If inflation is too high, it might tighten policy (raise rates); if unemployment spikes, it might loosen policy (lower rates).The copyright of this article belongs to the original author/organization.
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