Answer :
The correct option is 1) Stabilizing prices. The U.S. Federal Reserve's macroeconomic policy goals are mainly to stabilize prices and promote maximum employment. These goals aim to maintain a stable economic environment and control inflation while also seeking moderate long-term interest rates to facilitate economic growth.
The goals of the U.S. Federal Reserve's macroeconomic policy, commonly referred to as monetary policy, include: stabilizing prices, promoting maximum employment, and maintaining moderate long-term interest rates. These objectives aim to provide stability in the economy, often referred to as the Fed's dual mandate, focusing on promoting a stable financial system and controlling inflation. Although not explicitly mentioned as often, the goal of moderate long-term interest rates also serves to facilitate economic growth without exacerbating inflation.
Price stability helps to ensure that money retains its purchasing power thereby contributing to a stable financial environment for both consumers and businesses. Full employment is sought after by the Fed as it corresponds with utilising the workforce efficiently, which is important for an economy's health and growth prospects. In some instances, these goals may conflict, but the Fed must balance them to maintain overall economic stability. The correct option is 1) Stabilizing prices.
