The Federal Reserve's statutory objectives of maximum employment and stable prices are commonly called its dual mandate.
Congress assigned these paired goals to the Federal Reserve through amendments associated with the Federal Reserve Reform Act of 1977. The Fed uses monetary policy—especially changes in the federal funds rate and related financial conditions—to pursue an employment level that can be sustained and low, stable inflation.
The word “dual” does not mean the Fed can always achieve both goals equally at every moment. Inflation and employment can move in opposite directions, forcing policymakers to weigh risks and decide how quickly to adjust interest rates. The Federal Open Market Committee currently regards 2 percent inflation over the longer run, measured by the personal consumption expenditures price index, as consistent with price stability.
A technical nuance is that the statute also mentions moderate long-term interest rates. Because stable prices and maximum employment are treated as the central coequal objectives, public discussion generally calls the framework a dual mandate rather than a triple mandate.