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The Federal Reserve enacts monetary policies to stabilize prices and maximize employment in the U.S. economy. These dueling goals are known as the dual mandate. For example, if prices are too hot, the Fed may vote to raise interest rates to influence a decrease in borrowing. Other experts argue that the dual mandate remains key to keeping the U.S. economy safe and stable. Watch this video to see how the Fed tries to strike a near-impossible balance to promote both parts of the dual mandate.

Persons: Danielle DiMartino Booth, Thomas Hoenig, David Wessel Organizations: QI Research, CNBC, International Monetary Fund, Federal Reserve Bank of Kansas City, Hutchins, Brookings Institution Locations: U.S

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow the Federal Reserve tries to balance prices and jobsThe Fed has a dual mandate to strike a delicate balance to ensure low, steady prices while setting a course for an economy that encourages everyone to get a job who wants one. But the mandate's targets can contradict each other. Some economists think the central bank should consider a single target while others argue the current policy has worked to create a more stable economy. Here's how the Fed tries to strike a near-impossible balance to promote both parts of this dual mandate.

Organizations: Federal Reserve

"It really seems like companies have become addicted to junk fees." Junk fees are making companies billions of dollars richer and the practice spans industries, including banking, telecom, entertainment and hospitality. CNBC sorted some of the biggest junk fee offenders into three separate buckets. "Junk hotel fees and these ancillary fees are bringing in about $3 billion a year for the hotel industry," Wolfe told CNBC, citing a Consumer Reports estimate. Watch the video above to learn more about where junk fees hide, how agencies are proposing changes, where policy falls short and whether increased regulatory oversight may be enough to squash junk fees once and for all.

☆ Why 'maximum employment' feels impossible
▼ + stars: | 2023-04-07 | by ( Andrea Miller | Lindsey Jacobson | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy 'maximum employment' feels impossibleThe Federal Reserve has a dual mandate to both promote maximum employment and keep prices stable. Yet, the central bank cannot influence employment directly and it is notoriously hard to measure. Watch the video above to learn why the Fed does not always want everyone who wants a job to have one, and what that means for inflation.

Since 1977, the Federal Reserve has focused on creating maximum employment and maintaining stable prices, commonly known as the dual mandate. "[Maximum employment is] this more sort of amorphous thing," Rucha Vankudre, a senior economist at labor market analytics firm Lightcast, told CNBC. However, at the Federal Open Market Committee news conference in January 2022, Federal Reserve Chairman Jerome Powell announced that "labor market conditions are consistent with maximum employment." Maximum employment is also difficult to quantify because existing measures of employment, such as the unemployment rate or the labor force participation rate, often do not account for certain groups of people. Watch the video above to learn more about what maximum employment really means and how inflation impacts employment.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy cities are filling up with luxury apartmentsAn apartment building boom is unfolding in the U.S. This is a welcome signal as many cities remain stuck in a housing shortage. The shortfall in home supply has pushed many people into budget-stretching rents. Many of the new multifamily structures feature "luxury" amenities, such as pools and easy access to transportation. Washington policymakers are now attempting to address regulations that slow the pace of homebuilding, in an attempt to resolve rent inflation concerns.

This valuation comes after a rich global history showcasing wars fought over salt, trade routes built for commodities, taxes levied against the mineral and even cities named in sodium's legacy. "You could not have an international economy if you didn't have salt," Mark Kurlansky, author of "Salt: A World History," told CNBC. "We're seeing that the majority is deicing salt," Seth Goldstein, equities analyst with Morningstar, told CNBC. However, if too much salt permeates our environment, the effects can be dangerous, according to the Environmental Protection Agency. Runoff from deicing salts that keep our roads safe in wintry weather is the most obvious way that salt enters the environment.

☆ How salt built the global economy and how the U.S. uses it today
▼ + stars: | 2023-03-28 | by ( Andrea Miller | Lindsey Jacobson | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow salt built the global economy and how the U.S. uses it todayWars were fought over it, roads paved for its trade, taxed levied against it and even cities named for its legacy. Salt, in fact, made global economics possible. The global market for salt was worth over an estimated $13 billion in 2021. But the increased salinization has contaminated drinking water and soils, causing billions in damages. Watch the video above to learn more about the history of salt and the possible solutions for a saltier world.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe $52.6 billion plan to save the NYC region from climate changeThe New York and New Jersey Harbor and Tributaries Study, also known as the HATS study, looks at how to protect the NYC area from another Hurricane Sandy. The Army Corps of Engineers is recommending a $52.6 billion plan to protect the region from climate change including seawalls, levees and elevated promenades. Watch the video to find out more about what the plan entails and why the price tag is so high.

☆ CNBC Daily Open: The Fed wants inflation at 2%. But the economy may be fine with higher inflation
▼ + stars: | 2023-02-21 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

But the economy may be fine with higher inflation. The 2% inflation target has been repeated so often by Fed officials and central bankers worldwide that it seems absolutely crucial to a healthy economy. But "the 2% inflation target, it's relatively arbitrary," said Josh Bivens, director of research at the Economic Policy Institute. In 1991, Canada announced its inflation target; the United Kingdom followed a year later. But if the 2% target is arbitrary, it implies that the economy could function normally at a higher level of inflation.

☆ CNBC Daily Open: The Fed wants inflation at 2%. But the economy might be fine with higher inflation
▼ + stars: | 2023-02-21 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy the Federal Reserve aims for 2% inflationThe 2% inflation target is key to the Federal Reserve's vision for stable prices. But what's the origin of this 2% inflation goal? In the late 1980s, the country faced high inflation when one economist proposed, 'Why don't we just have an inflation target?" The U.S. declared its 2% target in 2012. Watch the video above to learn more about why some economists argue for changing the target, lower or higher, and whether it stands a chance of changing anytime soon.

The 2% inflation target is key to the Federal Reserve's vision for stable prices in the U.S. economy, according to the Federal Reserve Bank of St. Louis. But, "the 2% inflation target, it's relatively arbitrary," Josh Bivens, director of research at the Economic Policy Institute, told CNBC. "We led the way in inflation targeting," Arthur Grimes, professor of wellbeing and public policy at Victoria University, told CNBC. Canada announced its inflation target in 1991, and the United Kingdom followed suit in 1992. Then, Sweden and Finland declared inflation targets in 1993, according to the Organization for Economic Cooperation and Development.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow the secret $40 billion food fraud market worksThe food in your kitchen cabinets may not be what it seems. Fraudsters motivated by economic gain secretly infiltrate the global food market through a variety of means, including counterfeits, dilutions, substitution and mislabeling, according to the Global Food Safety Initiative. This not only adds to your food bill, but can put your health and safety at risk. Some estimates say food fraud affects at least 1% of the global trade at a cost as high as $40 billion a year.

It's that simple," Larry Olmsted, author of "Real Food/Fake Food," told CNBC. Some estimates say food fraud affects at least 1% of the global food industry at a cost as high as $40 billion a year, according to the Food and Drug Administration. "We might not know the overall impact of food fraud because so much of what fraudsters do is hidden from us and has been for centuries." Between 2012 and 2021, the most common type food fraud was lying about an animal's origin and dilution or substitution, both ranking at 16% of recorded incidents by food-safety monitor Food Chain ID. The Food Fraud Prevention Think Tank suggests five questions a consumer can ask themselves to reduce their vulnerability to product fraud.

Meanwhile, abortion-rights advocates and the ballot initiative groups they’re working with said preliminary efforts are also underway in Florida, Missouri and other states. Meanwhile, voters in two Democratic states, California and Vermont, chose to officially protect abortion rights in their constitutions. “Reproductive rights is a winning issue. The Dobbs decision had a huge impact,” said Chris Melody Fields Figueredo, the executive director of the Ballot Initiative Strategy Center, which works with progressive organizations to help advance citizen-led ballot measures. “And what we know — that about a majority of Americans actually support reproductive rights and abortion access — means we have an incredible opportunity.”

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy ADHD diagnoses have skyrocketedThe rate of ADHD diagnoses has been rising in the U.S. for the past two decades, and experts suspect that social media and the pandemic may be a catalyst. More Americans are seeking out treatment, which is straining the health care system. Then, in October, the Centers for Disease Control and Prevention announced there was a shortage of Adderall, both the brand and generic form. Watch the video above to learn more about ADHD and whether the medical system can handle the sharp rise in demand.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow corn fuels the U.S. economyThere's a reason people refer to corn as yellow gold. In 2021, the United States' corn crop was worth over $86 billion. According to the USDA, The U.S. is largest consumer, producer and exporter of corn in the world. At $2.2 billion in 2019, corn is the most heavily subsidized of all crops. Here's how the U.S. started fueling its economy with corn.

The United States has just about 90 million planted acres of corn, and there's a reason people refer to the crop as yellow gold. In 2021, U.S. corn was worth over $86 billion, according to calculations from FarmDoc and the United States Department of Agriculture. "We're really good at [corn production]," Seth Meyer, chief economist at the USDA, told CNBC. Corn is in what we buy, including medications and textiles, and corn is turned into ethanol, which helps to fuel cars across the nation. "Do we get the corn acres because we've got the support, or do we have the support because we have the corn acres?"

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow Congress and big businesses can help fight inflationAmericans look to the country's most powerful bank, the Federal Reserve, to combat inflation. But the Federal Reserve does not have to take on the battle alone. Fiscal policy enacted by Congress and power wielded by big business can help fight rising costs. Watch the video above to learn more about how corporations and Congress influence inflation, why the Fed doesn't have to take on rising costs alone and what it will take to normalize the U.S. economy.

"I think our biggest problem, at least for the foreseeable future, is high inflation," Mark Zandi, chief economist at Moody's Analytics, told CNBC. The Fed can raise interest rates to slow inflation, which ultimately makes the cost of borrowing higher for everyday Americans, and that can be just as painful as inflation. Fiscal policy enacted by Congress and power wielded by big business can help fight rising costs. "Congress has much more targeted tools," Claudia Sahm, former Fed economist, told CNBC. Watch the video above to learn more about how corporations and Congress influence inflation, why the Fed doesn't have to take on rising costs alone and what it will take to normalize the U.S. economy.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow the organ transplant system works in the U.S. There are more than 100,000 people in the United States waiting for an organ transplant, and they could be waiting a while. Only a little more than 50% of people waiting for an organ will receive one within five years because of the shortage of organs. The medical community has been working on ways to increase the supply beyond deceased donations including using live donors for organs like kidneys, organs from animals and even mechanical organs.

☆ Making $200,000 a year selling fresh fish in New England
▼ + stars: | 2022-10-23 | by ( Andrea Miller | Tasia Jensen | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMaking $200,000 a year selling fresh fish in New EnglandLaura Foley Ramsden, 53, is a fourth generation fish mongress at Foley Fish in New Bedford, Massachusetts. Foley Fish was founded in 1906 by her great-grandfather and has been in the family since. In 2021, Ramsden and her husband sold the company to The Chefs' Warehouse. Laura became vice president of sales and made $200,000 a year.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMark Zandi says recession may come in the second half of 2023Many Americans are wondering about the timing and inevitability of an economic recession. Moody's Analytics' chief economist Mark Zandi tells CNBC's Andrea Miller whether in his view that the U.S. has already experienced a recession in 2022, if Americans should expect layoffs to rise and whether Americans should be preparing for an economic downturn.

Moody's Analytics' chief economist Mark Zandi cautions that a recession may be on the horizon. In an interview with CNBC's Andrea Miller, Zandi said a recession did not occur in the first half of this year. Zandi called employment levels the "most important indicator[s]" of a recession. Zandi attributed the confusion about whether the U.S. experienced a recession in the first half of this year to the coronavirus pandemic and the Russian invasion of Ukraine. The Moody's chief economist said that if rising prices don't ebb “the only way to get rid of that persistent stubborn inflation would be to push the economy into a recession.” If there is a recession, Zandi said it "probably won’t happen until the second half of 2023."

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