Why The U.S. Is Failing At Its Economic Goals

The Fed has a dual mandate to strike a delicate balance to ensure low, steady prices and promote an economy that allows everyone to get a job who wants one. But, the mandate’s targets can contradict each other. Some economists think the central bank should consider a single target while others argue it has created a more stable economy. “There’s an inherent conflict in trying to keep prices down,” Danielle DiMartino Booth, founder and CEO of QI Research, told CNBC. “It’s impossible to maximize employment and not ignite price pressures.” Here’s how the Fed tries to strike a near impossible balance to promote both parts of the dual mandate. Chapters: 00:00 — Introduction 01:45 — Dual Mandate 04:05 — Balancing Act 06:40 — Single Mandate Produced by: Andrea Miller Edited by: Mark Licea Animation: Andrea Schmitz Supervising Producer: Lindsey Jacobson