Maximum employment, stable prices, and moderate long-term interest rates are the Fed's three monetary policy goals.
<h3>What is monetary policy?</h3>
Monetary policy, which also has the goal of fostering economic growth, controls the total amount of money in a country. Examples of monetary policy tactics include modifications to bank reserve requirements and interest rate changes. Monetary policy is frequently divided into two categories: expansionary and restrictive.
To enhance employment, GDP, and price stability, for instance, policymakers control the flow of money using tools like interest rates, reserves, bonds, etc.
The Federal Reserve (the Fed), the country's central bank, has been given authority over monetary policy by Congress; however, Congress is also responsible for overseeing the Fed's compliance with its legal obligations of promoting maximum employment, maintaining price stability, and maintaining moderate long-term interest rates.
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