Why The U.S. Is Failing At Its Economic Goals

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The Fed has a dual mandate to strike a delicate balance to ensure low, steady prices and promote an economy that allows everyone to get a job who wants one. But, the mandate’s targets can contradict each other. Some economists think the central bank should consider a single target while others argue it has created a more stable economy. “There’s an inherent conflict in trying to keep prices down,” Danielle DiMartino Booth, founder and CEO of QI Research, told CNBC. “It’s impossible to maximize employment and not ignite price pressures.”

Here’s how the Fed tries to strike a near impossible balance to promote both parts of the dual mandate.

Chapters:
00:00 — Introduction
01:45 — Dual Mandate
04:05 — Balancing Act
06:40 — Single Mandate

Produced by: Andrea Miller
Edited by: Mark Licea
Animation: Andrea Schmitz
Supervising Producer: Lindsey Jacobson

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Why The U.S. Is Failing At Its Economic Goals

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24 COMMENTS

  1. There is a deluge of economic data currently hitting the media. It takes a lot to look past the deluge of news and concentrate on what matters, which is that stocks always rise back, regardless of how low they fall. Really, I just keep investing and ignore all the news. I recently set aside roughly $250k to invest in the market because we think there will be a crash. Any suggestions?

  2. In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.

  3. The media is currently barraged with a lot of economic data right now. It takes a lot to see beyond the whole ocean of news on focus on what is important, which is that no matter how low stocks go, they always bounce back. I really ignore all the news and keep investing. I recently allocated about $121k to put in the market as we anticipate a crash. Any recommendations?

  4. The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.

  5. I recently made more purchases. Saving money for a market downturn is likewise a bad idea. There are numerous ways to look at recessions and depressions, we cannot always expect to make large returns, and taking chances is better than doing nothing. The bottom line is that you will achieve remarkable results by diversifying your portfolio and making wise decisions. My portfolio's raw earnings rose by $608k in just 5 months.

  6. recessions are two qtrs of negative Gross Domestic Product. when there r moving expenses, at 100% deduction against income, there be a LOT of moving of factory equipment to the offshores. USA could have all the profits in the world, record number, and still have a recession or a depression if there is no increase in gross wages.

    Net pay is inside the gross wages, but ONLY the Gross wages can change the GDP. changing Net pay has NO effect on the Gross wages used in the GDP calculation.

    Inflation is a business decision, made by managers and upper management, on behalf of the shareholders.

    when there is inflation without an increase in gross wages (which are the main element inside the GDP), there might be a recession.

    Profits never go into the GDP, as per the formula (taught in all grade 10 business courses).

    The Federal Reserve now holds more assets than the annual Federal Budget. that makes the usa a centrally controlled economy, by way of only 6 regional Governors.

    that is more communism than any other time in usa history

    Raising rates is a dumb micro economic idea, given the world economy does not care what it costs to borrow money in north america,

    USA shareholders Transfer Price to their offshored companies and then borrow against the Financials' (due to china maintaining a control over their currency, and disallowing investors to take all their profits out of china). so as to secure the cash on hand to pay a dividend to themselves. Bain did not read the mandarin before they moved the assets of the manufacturing companies they LBO-ed.

    Hmm well, i do not usually suggest buying into any Bond other than a James.

    as for stocks. LOL if u read the history of wall street, u will know there is always a FALL in values in the Fall. that is due to the annual sell off of stocks by banks, so they can pay off the Farmer's harvest contracts. banks hold cash all yr long, after Farmers pay them (after the Farmer's get paid in the Fall), and then sell their holdings just before having to pay the Farmer's contracts off. happens every Fall

    and if there is a tax cut in the prior yr, like in 1986 or in 2017, there will be a Crash in the Following Fall, as per there be too speculation when the banks sell.

    no body knows the why the banks r selling, causing a stampede lolol and the sheep get to learn what every brain already knows, banks sell when they need to

    myop DEMs can put Trigger laws into place. so when ever the inferior to math class GOPers default, or shut down the USA Fed Govt, the DEM States can remove the 2nd amendment, sort of like how Wyatt Earp did at the OK Corral. // the 14th Amendment's Section 4 demands the full payment of all prior debts, and that includes all the tax cuts' debts the GOP promised to never exist (tax cuts were to pay for their own debt). basic grade 10 business class teaches 'no tax cut ever paid for itself'.

    stupid people r created by dropping out of the grade 10 courses. // once the monkeys take to the gym class, the GOP use the monkeys as cannon fodder in their loser wars

  7. 10 minute long video and not a single word on the fact this inflation is everything to do with supply side. To which USA do not have full control on. Supply side induced inflation won't respond very well to interest rate hike. This is why they are openly saying now high rate for longer period.

  8. Three years ago, it was impossible to anticipate the current condition of the U.S. dollar. The United States persists in repeating the same errors responsible for the dollar's current predicament. Consequently, there's no certainty that the dollar's future will be as promising as anticipated.

  9. Recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio

  10. We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.

  11. maybe they should ask the other countries they borrowed weapons and surplus they used for army to make stronger. maybe they should fellow countries for debt relif because gov. is suffering with debt from there long fellow owners. dates back decades. hidden money like minors from gold minnning or safes or assets in there gold

Comments are closed.