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This addresses the goals of the Fed & restraint/expansion.

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The Federal Reserve System (aka, the Fed) has a large measure of political independence. The Board of Governors, appointed by the US president and confirms by the US Senate, serve 14 year terms. In addition, the Federal Open Market Committee includes representatives of private banks in the Federal Reserve System.
What are the best goals for the Fed? Should it lean toward restraint or toward expansion? Why?

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Solution Summary

The solution discusses the goals of the Fed (Federal Reserve) and if they should lean toward restraint or expansion.

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The federal reserve should be doing all that they possibly can, and everything in their power, to adhere to the basic six goals that make up their very foundation. The Fed was created, and should continue to institute policy and change that stabilizes the financial system, particularly considering the given unstable nature of the economy. The Fed should focus on economic growth, which would in turn raise the employment levels. Another main goal of the Fed ...

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