The Federal Reserve's new policy framework will help it achieve maximum employment and stable price growth more efficiently, John Williams, president of the Federal Reserve Bank of New York, said Wednesday.and maximum employment, particularly in low- and middle-income communities.
The Fed's new plan"represents both an important evolution in our thinking about how to achieve our goals and another step toward greater transparency," Williams said in Possibly the biggest single change to the Fed's strategy is its plan to target an inflation rate that averages 2% over time, instead of a flat 2% target. The change will allow for the central bank to guide for periods of inflation greater than 2% following a time of below-target price growth.
"These changes are mutually reinforcing and will meaningfully improve our ability to achieve both of our dual mandate goals in an environment of a very low neutral rate," Williams said.Bernstein breaks down 4 reasons why red-hot growth stocks will keep soaring - and outlines how to build a safe portfolio designed to take advantage