Definition
The two goals Congress gave the Fed: maximum employment and stable prices.
The story
The Fed is always balancing a seesaw. Push rates up too hard to fight inflation and people lose jobs. Keep rates too low to protect jobs and prices can run away. Every decision is a judgment about which side needs more weight right now.
Why markets watch it
It's why the jobs and inflation reports move markets more than almost anything else.
See it in the story
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms