Explaining Southern California's economy

Latest report shows Fed failing at dual mandate

Karen Bleier

The Federal Reserve has released it most recent Beige Book, an analysis of economic activity across the nation.

The Federal Reserve has two main jobs: seek price stability in the economy; and engender conditions that lead to full employment, which it defines at something in the 5-6 percent unemployment range. The Fed has other roles, related to it position as the nation's central bank and its control over interest rates. But at its core, the Fed is supposed to keep inflation and unemployment low.

According to the latest Beige Book — national economics research that the Fed puts out eight times a year — the central bank has inflation under control but it isn't seeing unemployment decline significantly. Here's how the Beige Book summary starts out:

Reports from most of the twelve Federal Reserve Districts indicated that overall economic activity continued to expand at a modest to moderate pace in June and early July.