The Federal Reserve has two main objectives:

 

  1. to “Maintain Price Stability” (which explains Janet Yellen’s recent denial of the link between ‘money printing’ and commodity price rises).
  2. to “Foster Maximum Employment”.

Here, I get to grips with the second objective of “fostering maximum employment”. Jargon aside, I try to answer the pertinent question; what does this task really involve?

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An update of the weekly google insights charts for 17/4/11. These charts are intended to help the contrarian investor gauge the prevailing opinion in the inflation vs deflation debate. The latest data points show that inflation worries are rising in excess of deflation fears.

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