Are the Federal Reserve and the PresidentCongress Fiscal Pol

Are the Federal Reserve and the President/Congress (Fiscal Policy makers) complements to each other or in competition with each other? Or Both? What is the Goal of the Fed and the goal for the President/Congress.

Solution

The fed and the Congress are generally complements to each other as the fiscal policy and monetary policy works together to balance the economy.However,sometimes there can be disagreements between the Fed and the Congress.The aim of the president is also to please the people.He may force the Fed to implement policies that may not be the best for the economy.In that case these two can be competing.

The goal of both of them is to maintain lower level of unemployment and Inflation and keep the economy healthy.