Group 1 - The Federal Reserve announced a 25 basis point cut in the federal funds rate target range to 4.00% to 4.25%, marking its first rate cut since December 2024 [1] - President Trump has expressed dissatisfaction with the Fed's rate cut pace, arguing that the U.S. does not face inflation [1] - Fed Chairman Powell indicated a shift in policy focus, prioritizing employment concerns over inflation [1] Group 2 - The Federal Reserve was established in 1913 to provide financial support to the banking system and prevent systemic crises [2] - The Great Depression in 1929 highlighted the limitations of the Fed, leading to reforms that expanded its role in monetary and credit regulation [2] - The dual mandate of stabilizing prices and promoting maximum employment was formalized in the 1977 Federal Reserve Reform Act [3] Group 3 - The 1970s stagflation challenged the prevailing economic theories, leading to a new focus on both inflation and employment [3] - Former Fed Chairman Paul Volcker implemented aggressive interest rate hikes to combat inflation, which solidified the Fed's dual mandate in practice [4] - The Fed adopted an inflation target of 2% in the 1990s, while employment targets remained more flexible [4][5] Group 4 - The dual mandate framework has been criticized for its short-term focus, neglecting structural economic issues [5] - The 2008 financial crisis exposed the risks of the Fed's low-interest rate policies and lack of regulatory oversight [6] - The complexity of the current economic landscape poses significant challenges for the Fed in assessing market conditions and risks [6][7] Group 5 - Chairman Powell acknowledged the current economic challenges, highlighting the dual risks of weak employment and rising inflation [7] - The Fed faces increasing difficulty in balancing immediate issues with long-term risks, complicating its policy decisions [7]