The Fed changed its inflation policy from a set 2% target to a more flexible policy that would be based on an average inflation target, allowing for higher inflation temporarily.
Fed Chairman Jerome Powell Thursday announced that the Fed tweaked its inflation policy, indicating it would be willing to allow inflation to run hotter, or rise above its 2% target, while it continues to help the economy.at its annual Jackson Hole symposium. Diane Swonk, chief economist at Grant Thornton, said the Fed's comments about inclusiveness have never been so explicit. Powell's comments come as the stock market's meteoric recovery to record highs is being held up as evidence of Fed policy helping Wall Street, while 14.5 million people continue to collect state unemployment benefits and millions more are receiving funds from a special pandemic-related federal program.
"It highlights the importance of getting underrepresented groups into the workforce and the long term benefits that can have on income inequality, wealth inequality and having a stronger economy with a stronger labor force," he said. Tilley said the Fed's move to average inflation targeting is something that was evolving. "I think the Fed has always had this as an operating goal. They always acted like this was their goal. But they haven't convinced markets of it. Markets over time had become convinced that the Fed was biased on the hawkish side," he said. Fed officials previously have said they would tolerate inflation rising above their target but also below it.
Thank you
Everything Powell says is pretext for printing trillions of $$$’s... EndTheFed
the federalreserve promises to look at how their policy is affecting lower-income communities AFTER the Jeff Bezos' of the world are made whole.
This is absolute bullshit. Money printing causes inflation. Inflation is a tax that affects the poorest among us.
billyraynjoycem 4 yrs too late god do suckers really believe this pre election garbage? Just like the terrific Trump health plan he hasn't put out yet
Spoiler: it isn’t.
Seriously. They are setting diametrically opposite policies.
Sure...yeah...yeah..sure.
Smoke and mirrors. No way are they going to do this. Do you really think we're that stupid?
The FED worked hand and hand with Donald Trump to artificially inflate the stock market. The eventual bubble burst is going to be an all timer.
It doesn't. Saved you a click.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »