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The Fed walks a tightrope, trying to balance its dual mandate of achieving maximum employment and stable prices. This often involves making tough decisions that can have far-reaching consequences. They closely monitor various **_economic indicators_**, such as the **_Consumer Price Index (CPI)_**, to gauge inflation, and the **_unemployment rate_**, to assess the health of the labor market. The Fed's actions are never taken lightly, and they always consider the potential impacts on the **_financial markets_**, the **_banking system_**, and the overall economy. The Fed is always monitoring the **_global economy_** and the actions of other **_central banks_**.
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