What is the primary objective of the Federal Reserve in terms of monetary policy?

The primary objective of the Federal Reserve in terms of monetary policy is to support economic growth and employment while controlling inflation. This dual mandate aims to create a stable economy where both growth and price stability are prioritized. The Federal Reserve implements monetary policy through various tools such as setting interest rates, managing the money supply, and regulating banks. By balancing these factors, the Federal Reserve seeks to foster an environment conducive to sustainable economic expansion and low inflation, which ultimately benefits employment levels and overall economic health.

The other options do not align with the Federal Reserve's goals. For instance, restricting economic growth would contradict the mandate to enhance employment and economic conditions. Consistently increasing interest rates does not reflect a balanced approach to monetary policy, as it may dampen economic growth rather than support it. Lastly, eliminating banks from the financial system is not a feasible or supportive policy goal for the Federal Reserve, as it plays a crucial role in the economy by providing financial services and promoting monetary stability.