The Carter Administration recently outlined its economic strategy for 1979 and 1980 and also addressed some of the longer-term economic problems that will face the United States in the early 1980s. The major problem confronting the administration has become familiar—reducing inflation without provoking a recession. This problem has been complicated, however, by recently enacted legislation, the Full Employment and Balanced Growth Act of 1978 (Humphrey-Hawkins) and the Revenue Act of 1978. This article summarizes and evaluates the administration’s economic plan along with the Federal Reserve’s statement of intent. The focus is on whether these monetary and fiscal plans are consistent with the achievement of the goals of the Humphrey-Hawkins Act and the Revenue Act of 1978.