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The Federal Reserve System has been given a dual mandatepursuing the economic goals of maximum employment and price stability.
The Federal Reserves dual mandate is to achieve maximum employment and keep prices stable. It does this by controlling the money supply, and raising or lowering interest rates when the economy is slowing down or growing too fast.
The Federal Reserves supervision activities include examinations and inspections to ensure that financial institutions operate in a safe and sound manner and comply with laws and regulations. These include an assessment of a financial institutions risk-management systems, financial conditions, and compliance.
It is charged with helping the U.S. maintain stable prices (inflation), promote maximum sustainable employment and provide for moderate, long-term interest rates. These functions have a docHub impact on the broader economy.
Supervising and Regulating Financial Institutions and Activities. The Federal Reserve promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole.
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In pursuit of continued financial stability, the Federal Reserve monitors the potential buildup of risks to financial stability; uses such analyses to inform Federal Reserve responses, including the design of stress-test scenarios and decisions regarding other policy tools such as the countercyclical capital buffer;