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The federal reserve's two main monetary policy targets are the money supply and the interest rate.

Our two goals of price stability and maximum sustainable employment are known collectively because the "dual mandate."1 The Federal Reserve's Federal Open Market Committee (FOMC),2 which sets U.S. monetary policy, has translated these broad concepts into specific longer-run goals and methods.

As a result, the goals of maximum employment and stable prices are often named because of the Fed's “dual mandate.” Maximum employment is the highest level of employment or lowest level of unemployment that the economy can sustain while maintaining a stable rate of inflation.

Monetary policy within the u. s. comprises the Federal Reserve's actions and communications to market maximum employment, stable prices, and moderate long-term interest rates--the economic goals the Congress has instructed the Fed to pursue.

A macroeconomic policy enacted by the financial institution that involves the management of cash supply and interest rates. This policy is usually wont to stimulate growth, control inflation and manage exchange rates.

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