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Answer :
Final answer:
The primary goals of the U.S. Federal Reserve's macroeconomic policy are to ensure price stability and achieve maximum employment, which are central to the Fed's dual mandate.
Explanation:
The goals of the U.S. Federal Reserve's macroeconomic policy primarily include price stability and maximum employment. These two objectives are part of what is commonly known as the Fed's dual mandate and play a critical role in the nation's economic health. The Federal Reserve aims to maintain a level of economic activity that supports maximum employment, which is basically the highest level of employment that the economy can sustain without causing inflation. Concurrently, the Fed seeks to manage the inflation rate, keeping it low and stable, with a target rate of 2% annual inflation. These goals are designed to sustain long-term economic growth without leading to excessive inflation or deflation.
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