dual mandate

The Fed chair’s semiannual congressional testimony came out of the Full Employment and Balanced Growth Act of 1978.

The Fed is charged with promoting a strong economy by maintaining stable prices and maximum employment, but the latter could be a challenge with a job market that’s slowing.

There are far fewer new job seekers in the U.S. due to Trump’s restrictive immigration policies. As a result, the goal posts for what healthy job growth looks like have also changed.

“Marketplace” host Kai Ryssdal spoke with Austan Goolsbee, president and CEO of the Federal Reserve Bank of Chicago, about Fed independence, what the government shutdown means for federal data, and inflation risks.

Stephen Miran, President Trump’s latest appointee to the Federal Reserve Board Governors, wants the federal funds rate to be a full 2 percentage points lower than its current level.

The expectation is that the Fed will cut rates — but what if inflation spiked in August? 

July’s weak jobs report could be grounds for a big rate cut come September.

The September rate cut raised hopes for a sturdy labor market into next year and beyond. The effect on jobs, though, may take time.

The monthly inflation gauge, to be released Wednesday, could influence how much the central bank cuts rates next week.

Despite high prices, “wages are growing faster than inflation,” and families’ purchasing power is growing, he says.