The federal reserve act of 2000 says that the fed "shall maintain growth of the monetary and credit aggregates commensurate with the economy's potential to increase production."

The Federal Reserve Act of 2000 says that the Fed "shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production.

Explanation:

The Act was created in 1913 and signed by the then ruling president as a way of establishing economic stability. This act introduced the central bank to oversee the state monetary policies. The law was established to set out the structure, purpose and function of the Reserve System.  

Due to recession and other financial crisis prior to 1913, investors lacked trust in bank systems, therefore the act was passed to bridge the gap between citizens and the banking system. Over the years it has been amended by Congress to keep up with the changing financial times.

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