Fed’s Powell: Fed’s two mandates not in conflict
2022.09.09 00:11
FILE PHOTO: Federal Reserve Chair Jerome Powell attends the Federal Reserve Bank of Kansas City’s annual Jackson Hole Economic Policy Symposium in Jackson Hole, Wyoming August 28, 2015. REUTERS/Jonathan Crosby
(Reuters) – Federal Reserve Chair Jerome Powell on Thursday said he did not see a conflict between the central bank’s two congressionally mandated goals to foster both maximum employment and price stability, and he did not see a case for moving to a single mandate focused only on inflation.
“In particular in the current moment, I don’t see the two goals as in conflict at all because without price stability, we will not be able to achieve the kind of strong labor market that we want for a sustained period that benefits all, so I don’t see a case for moving to a single mandate,” Powell said in response to a question at an event hosted by the Cato Institute.
Powell added that he believes both goals can be achieved in the “medium term.”
