A key objective of the Federal Reserve is to maintain low unemployment levels.
This focus stems from the concern that high unemployment could jeopardize the viability of the Social Security system.
A key objective of the Federal Reserve is to maintain low unemployment levels.
This focus stems from the concern that high unemployment could jeopardize the viability of the Social Security system.
With fewer people contributing to Social Security, there would be a drop in funding for US government bonds.
If bond purchases decline, the Federal Reserve is forced to create more money to enable increased government spending.
The Fed aims to uphold the dominance of the USD globally.
However, when it resorts to printing additional money, inflation tends to increase, prompting market participants to seek alternative stores of value.