Powell Discusses the Fed's 'Third Mandate' and Long-Term Rate Management

The Federal Reserve officially has a triple mandate—price stability, maximum employment, and moderate long-term interest rates—but it primarily focuses on the first two, with the third often overlooked and debated among economists. Experts argue that the third element is less controllable and less emphasized intentionally, but its importance remains acknowledged to prevent risks to the economy and government debt sustainability. Overall, the Fed's actions suggest it effectively manages all three, even if not explicitly discussed.