Having the single goal of price stability would make the Fed more subject to political pressure.

Question

Quizplus · Accepted Answer

Having multiple goals, such as maximum employment and price stability, can make the Federal Reserve more subject to political pressure as it has to balance different objectives, which can be influenced by political agendas. A single goal like price stability could theoretically make its mandate clearer and less politically contentious.

Having the Single Goal of Price Stability Would Make the Fed