Will Kevin Warsh ignore the employment part of the US Federal Reserve’s mandate?
The two goals, enshrined into law in 1977, are coequal under the statute, but in practice, the Fed has historically given precedence to price stability. As Fed Chair Paul Volcker put it in 1981: “We will not be successful, in my opinion, in pursuing a full employment policy unless we take care of the inflation side of the equation.”
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