Full Employment and Balanced Growth Act of 1978

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The Full Employment and Balanced Growth Act of 1978, also known as the Humphrey–Hawkins Act, is a U.S. law that set national goals for full employment, price stability, and economic growth while formalizing the Federal Reserve’s responsibility for monetary policy reporting and objectives.


Statements (73)
Predicate Object
instanceOf United States federal statute
employment policy law
macroeconomic policy law
alsoKnownAs Humphrey-Hawkins Full Employment Act
Humphrey–Hawkins Act
amends Employment Act of 1946
chamberOfOrigin United States House of Representatives
codifiedIn Title 15 of the United States Code
country United States
creates semiannual Humphrey–Hawkins testimony
dateSigned 1978-10-27
emphasizes use of fiscal policy to achieve national economic goals
use of monetary policy to achieve national economic goals
establishes national employment goals
national price stability goals
national production goals
national real income goals
focusesOn coordination of monetary and fiscal policy
reduction of cyclical unemployment
reduction of structural unemployment
formalizesRoleOf Board of Governors of the Federal Reserve System
Federal Open Market Committee
goalHorizon five-year economic planning horizon
historicalContext post-1970s stagflation in the United States
includesProvision backup public employment programs if private sector cannot provide enough jobs
job training and placement assistance
priority to private sector employment growth
public service employment programs as a tool to achieve full employment
influenced Congressional oversight of monetary policy
Federal Reserve communication practices
jurisdiction federal government of the United States
legislativeBody United States Congress
namedAfter Augustus F. Hawkins
Hubert H. Humphrey
obligates President of the United States to propose policies to meet employment and inflation goals
President of the United States to set medium-term economic goals
President of the United States to specify numerical goals for unemployment and inflation
President of the United States to submit an annual economic plan to Congress
otherChamber United States Senate
policyArea employment policy
fiscal policy
macroeconomic policy
monetary policy
presidentAtSigning Jimmy Carter
primaryObjective balanced economic growth
balanced federal budget
full employment
price stability
publicLawNumber Public Law 95-523
relatedTo Federal Reserve monetary policy framework
United States anti-inflation policy
United States full employment policy
reportingTo House Committee on Financial Services
Senate Committee on Banking, Housing, and Urban Affairs
requires Federal Reserve Chair to testify before Congress twice a year
Federal Reserve to provide semiannual monetary policy reports
Federal Reserve to report monetary policy objectives to Congress
federal government to pursue balanced growth
federal government to pursue full employment
federal government to pursue price stability
federal government to reduce inflation
federal government to reduce unemployment
setsTarget inflation rate of 0 percent by 1988
unemployment rate not exceeding 3 percent for persons aged 20 or over
unemployment rate not exceeding 4 percent overall
shortTitle Full Employment and Balanced Growth Act
Humphrey–Hawkins Act
signedBy Jimmy Carter
sponsorInHouse Augustus F. Hawkins
sponsorInSenate Hubert H. Humphrey
status in force
title Full Employment and Balanced Growth Act of 1978
yearEnacted 1978

Referenced by (8)
Subject (surface form when different) Predicate
Full Employment and Balanced Growth Act of 1978 ("Humphrey-Hawkins Full Employment Act")
alsoKnownAs
Federal Reserve Act of 1913
amendedBy
Economic Report of the President
legalBasis
95th United States Congress ("Humphrey–Hawkins Full Employment Act")
passedLegislation
Employment Act of 1946
relatedLegislation
Federal Reserve Reform Act of 1977 ("Humphrey–Hawkins Full Employment and Balanced Growth Act")
relatedTo
Full Employment and Balanced Growth Act of 1978 ("Full Employment and Balanced Growth Act")
shortTitle
Full Employment and Balanced Growth Act of 1978
title

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