Moreover, central banks typically employ a data-dependent approach, meaning they continuously monitor economic indicators and adjust policies as necessary to achieve their mandates, such as price stability and maximum employment. This approach allows them to respond to changing economic conditions in a timely and appropriate manner, striking a balance between short-term exigencies and long-term sustainability. Overall, by considering multiple economic indicators and balancing short-term data with long-term trends, central banks like the Federal Reserve can make more informed and effective monetary policy decisions that support macroeconomic stability and sustainable economic growth