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 slow and insufficient rate cuts, arguing that "there is no inflation" in the U.S. [1] - Fed Chairman Powell indicated a policy shift by prioritizing employment concerns over inflation, reflecting a broader consensus among the government and investors on evaluating Fed policies through inflation and employment metrics [1] Group 2 - The Federal Reserve was established in 1913 to provide financial support to the banking system and prevent systemic crises, evolving its role over time [2] - The 1929 Great Depression highlighted the limitations of the Fed, leading to reforms that enhanced its authority in monetary and credit regulation [2] - The dual mandate of "stable prices" and "full employment" was formally established in 1977, marking a significant shift in U.S. economic policy thinking [3][4] Group 3 - Paul Volcker's tenure as Fed Chairman began in 1979 with inflation at 13%, leading to aggressive interest rate hikes that ultimately curbed inflation but caused a deep recession [4] - The Fed adopted an inflation target of 2% in the 1990s, while employment targets remained flexible, allowing for a clearer framework for monetary policy [4] Group 4 - The dual mandate framework has been criticized for focusing too much on short-term economic fluctuations, neglecting structural economic issues [5] - The 2008 financial crisis exposed the Fed's failures in recognizing systemic risks, as it relied on the belief in market self-correction [5][6] - Current economic complexities, including globalization and technological changes, present significant challenges for the Fed in balancing employment and inflation risks [6]