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What a more flexible Fed means for investors everywhere

Last Updated: September 30, 2025

The Fed, America’s central bank, has a dual mandate, to maintain stable prices for the goods and services that households want to purchase, and promote maximum employment, which means that everyone who wants a job can get one. Congress formalised this mandate in 1977, but the Fed has been guided by it since the 1946 Employment Act, passed to help ensure Americans were rewarded for their efforts during World War II with a good standard of living.

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