Understanding why some groups persistently fare better than others in the job market and how these disparities may affect the economy’s overall performance is vitally important to the Federal Reserve. While opportunity and inclusion have long been central to American values, it is increasingly clear that they are also central to the strength of our economy.
1 As directed by the Congress, the Federal Reserve’s dual mandate is to promote maximum employment and stable prices. In fulfilling its dual mandate, the Federal Open Market Committee (FOMC) has set a target of 2 percent for inflation but does not have a similarly fixed numerical goal for maximum employment.