Why is the government of monetary policy the primary task of the federal reserve?

The Federal Reserve implements its monetary policy through the control of short-term interest rates and the effects of credit quality and expense in the economy.

Explanation:

Monetary policy directly affects interest rates; it impacts inventory, income and exchange rates indirectly. Monetary policy influences US expenditure, consumption, growth, jobs and inflation through these channels. In favor of economic growth, efficient monetary policy supports fiscal policy.

The FOMC reduced its Federal Funds Rate objective to almost zero at the end of 2008, with a view to supporting the economy during the financial crisis which started in 2007 and in the ensuing recession.It then started using less conventional policy-making strategies to purchase very high quantities of long-term government securities to put downward pressure on long-term interest rates. In addition, a more important policy instrument was the Federal Reserve's announcement of its assessment of the economic outlook and its expectations on the federal Fund pace.

In autumn 2014, the FOMC announced that its preparations for a normalization of monetary policy had made substantial progress towards full unemployment.

The FOMC agreed in December 2015 that it warranted the start of the policy standardization process and voted to increase its Federal Fund rate target.

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