1 In particular, the Congress has given the Federal Reserve a specific mandate (often referred to as the dual mandate) of fostering the objectives of price stability and maximum employment. Therefore, when the economy faces a disruption in financial markets, monetary policy must aim at balancing the risks to both economic growth and inflation.
After the contraction in the second quarter of 2020, world economic activity began to increase, although it is still overshadowed by the risk of a COVID-19 second wave. Economic improvements differ from country to country, depending on the size of fiscal and monetary stimuli, as well as the successful handling of COVID-19 and increased human mobility.