Your Job

The President of the United States has nominated you and the U.S. Senate has confirmed you to serve as the Chair of the Federal Reserve. Your job is to set monetary policy to achieve full employment and low price inflation. Your term will last 4 years (16 quarters).

Set Monetary Policy:

Fed funds rate

Adjust this key short-term interest rate to keep the economy

on track.

Press to raise the fed funds rate or tighten monetary policy, which over time tends to reduce inflation and increase unemployment. Press to cut the fed funds rate or loosen monetary policy, which over time tends to boost inflation and lower unemployment. Press to see your decision affect the economy.

Watch:

Unemployment Keep unemployment close to its natural rate of 5%.

Inflation

Keep inflation near the Fed's 2% inflation target.

Pay attention to the headlines for information about the

economy.

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