TheUSFinancialMarket revised

The US Financial Market
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What are the best goals for the Fed? Why?
The FED has various goals which the US Congress put in place in 1946 Employment Act. The goals were also outlined in Balanced Growth and Full Employment Act of 1978(Flannery,Hirtle, & Kovner, 2017).These goals include:
Stabilizing the financial system-The reason for this goal is to ensure a stable financial system where potential homeowners can access mortgages, a business can easily be financed, and students can obtain loans among other responsibilities.
Fighting inflation through price stability-inflation may pose a threat to the economy. Therefore, Fed always tries to control inflation by ensuring price stability.
The full employment-The goal is crucial because it tries always to ensure best policies that accommodate conducive economic environment for job creation.
Stability in interest rate-All investors and consumers are concerned about stability in the interest rate.
Currency stability-The currency stability enables the US to import goods from other countries cheaply. Therefore, FED aims at making US currency more stable so that it can conduct business with other countries effectively.
How does the structure of the Fed insulate monetary policy decision makers from political pressure?
The Fed acts independently from political influence and pressure. Two types of independence; goal independence and instrumental independent are applied in the …