What is often referred to as the "dual mandate" is actually three parts.
#1 pursuit of maximum employment, #2 stable prices, and #3 moderate long-term interest rates
Mr. Bernanke has chosen to ignore the third mandate of moderate interest rates. That mandate was included in the mission statement for specific purposes. The wisdom of this guidance seems to have been ignored. Moderate interest rates give value to the currency thus defending its stature. Moderate interest rates encourage savings and thus buffer against bad times. A nation is not healthy when the majority of citizens are two pay checks away from broke.
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