A Citizen’s Guide to the Fed and the Dual Mandate

Issued by Federal Reserve Bank of St. Louis

This module describes the structure of the Federal Reserve System, the makeup of the Federal Open Market Committee (FOMC), and how the FOMC sets the target range for the federal funds rate to promote the Fed’s dual mandate goals of maximum employment and price stability.

Type Learning
Level Foundational
Time Hours
Cost Free

Skills

Describe the structure of the Federal Reserve System
Explain how the Fed is both accountable and independent
Explain how the Fed uses interest on reserve balances to guide the federal funds rate
Explain how the FOMC sets the federal funds rate target range
Explain the makeup of the FOMC

Earning Criteria

To earn this badge you will read content, watch two videos, and complete three assessments.

Standards

Voluntary National Content Standards in Economics

The most recent version (2010) of the Voluntary National Content Standards in Economics does not align with the Fed’s ample reserves implementation of monetary policy. You can read our recommendations for updating the Voluntary National Content Standards in Economics at https://www.federalreserve.gov/econres/feds/files/2020092pap.pdf