The laws that created the Fed give it only vague recommendations about what goals it should pursue, and they do not tell the Fed how to pursue whatever goals it might choose.

Question

Quizplus · Accepted Answer

The Federal Reserve Act of 1913, which established the Federal Reserve System, does not provide specific, detailed goals for the Fed but rather outlines broad objectives such as managing inflation, supervising and regulating banks, maintaining the stability of the financial system, and providing financial services. Over time, the Fed's goals have been interpreted and clarified through additional legislation, policy, and practice, focusing on dual mandates of maximum employment and stable prices, among other responsibilities.

The Laws That Created the Fed Give It Only Vague