\begin{tabular}{l} The Fed's dual mandate consists of promoting the following in the U.S. \\ ceonomy: \\ OMaximum employment, stable prices, and moderate long-term \\ interest rates \\ \hline Ofull employment; below 2\% inflation \\ \hline OPrice stablitity and low unemployment \\ \hline ONone of the above \end{tabular}

The Federal Reserve's dual mandate was established in 1977, emphasizing its commitment to fostering a healthy economy through maximum employment and stable prices. This means they’re working hard to ensure that as many people as possible can find jobs while keeping inflation in check so that everyone’s money retains its value. Balance is key, as they also aim for interest rates that don't veer off into extremes, ensuring a stable financial environment for all. In practice, the Fed uses tools like interest rate adjustments and open market operations to influence economic activity. When unemployment is high, they might lower interest rates to encourage borrowing and spending. Conversely, if inflation is climbing too steeply, they may raise rates to cool down the economy. It’s a tightrope walk requiring constant monitoring and adjustment, and it’s absolutely vital!