In a healthy economy, people have jobs, consumers
can enjoy a rising standard of living, and businesses flourish.
Inflation
is under control, investors are confident, and the financial
markets — banking, investment, credit, and foreign exchange
— are operating smoothly.
An adequate, but not overly abundant, supply
of money and credit is key to a healthy economy and stable financial
markets. There needs to be enough money so that:
Individuals and
businesses can borrow at a reasonable
rate
of interest
Consumers spend
a healthy amount on goods and services
People are saving,
putting assets into banks and other financial institutions
and financial markets
Businesses tap the
financial markets for funding and put it to use in
making productive investments
The Fed at the helm
To keep the U.S. economy growing at its full potential,
the Federal Reserve System focuses its monetary policy
on achieving three goals:
Low inflation
High employment
Moderate and stable long-term interest rates
Anthony Santomero,
Federal Reserve
Bank of Philadelphia
Anthony Santomero, 
