Second, commercial banks – to the extent that they lend out the funds obtained from the central bank – should remain responsible for their own credit judgments, even in extreme situations. Conclusion The Congress has given the Federal Reserve a dual mandate to achieve both price stability and maximum sustainable employment.
The Federal Reserve's role as a provider of liquidity to cope with episodes of financial instability has been, and will continue to be, critical to its success in achieving this mandate. How best to perform that role is something that both academics and policymakers will continue to think about for a long time. References Aldrich, Nelson (1908). Congressional Record, Feb. 10, p. 1755.