The United States Federal Reserve has a dual mandate from Congress: maintain price stability and pursue maximum employment. A new strategy announced in August 2020 by Federal Reserve Chair Jerome Powell called for a more inclusive employment mandate aimed at boosting employment for workers in low- and moderate-income communities, often people of color. This is in keeping with the Fed’s response to the pandemic’s effect on the economy, which has used aggressive bond purchases and other tools to keep the labor market as tight as possible, thereby preventing a landslide into recession-level unemployment.
Fed should keep labor markets tight for a more inclusive economy (brookings.edu)
