Fed - New approach to inflation

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Powell announces new Fed approach to inflation that could keep rates lower for longer

Fed Chairman Jerome Powell announced a major policy shift Thursday to “average inflation targeting.”

That means the central bank will be more inclined to allow inflation to run higher than the standard 2% target before hiking interest rates.

In addition to the inflation change, the Fed changed its approach to employment in a way that will focus on those at the lower end of the income spectrum.

https://www.cnbc.com/2020/08/27/pow...n-that-could-keep-rates-lower-for-longer.html