Monetary Policy

The role of the Federal Reserve (the Fed) in the U.S. economy is both complex and pivotal. With the dual mandate of managing inflation and maximizing employment, the Fed must often walk a tightrope to balance these sometimes conflicting economic goals. Recently, the focus has shifted to paychecks, wages, and how these relate to inflation and interest rates. This article will delve into why the Fed is keeping a close eye on your paycheck and what it could mean for the broader economy. Understanding the Fed’s Dual Mandate The Federal…