What are the Federal Reserve’s goals? How are the Fed’s officials held accountable for meeting them?

Question

What are the Federal Reserve’s goals? How are the Fed’s officials held accountable for meeting them?

Answer 1

1) What are the Federal Reserve's goals?

Let's start with their mission statement which reads:

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The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.

Today, the Federal Reserve’s duties fall into four general areas:

- conducting the nation’s monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates

- supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers

- maintaining the stability of the financial system and containing systemic risk that may arise in financial markets

- providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system

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A prime goal is to maintain a robust economy while keeping inflation in check (generally between 1 and 3%)

2) How are the Fed's officials held accountable for meeting them?

The Fed has oversight by congress.

From their web site:

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The Federal Reserve's ultimate accountability is to Congress, which at any time can amend the Federal Reserve Act. Legislation requires that the Fed report annually on its activities to the Speaker of the House of Representatives, and twice annually on its plans for monetary policy to the banking committees of Congress. Fed officials also testify before Congress when requested.

To ensure financial accountability, the financial statements of the Federal Reserve Banks and the Board of Governors are audited annually by an independent outside auditor. In addition, the Government Accountability Office, as well as the Board's Office of Inspector General, can audit Federal Reserve activities.

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In the past when the economy is not running to Congress's approval, they will hold more public hearings with the Fed, and will tweak legislation.

Answer 2

Federal Reserve Goals

Answer 3

Goals Of The Federal Reserve

Answer 4

This Site Might Help You.

RE:
What are the Federal Reserve’s goals? How are the Fed’s officials held accountable for meeting them?
What are the Federal Reserve’s goals? How are the Fed’s officials held accountable for meeting them?

Answer 5

Have you gone to their website? You will get your answers there.

FederalReserve.gov