Market news
27.08.2020, 13:12

Fed's Chair Powell says FOMC will target average inflation

  • Emphasizes that "maximum employment is a broad-based and inclusive goal"
  • Shift motivated by underlying changes to the economy including lower potential growth and persistently lower interest rates and low inflation
  • Fed likely to be constrained by its effective lower bound more frequently than in past
  • Fed not tying itself to any particular method to define "average" inflation
  • Says Fed will "not hesitate to act' if inflation rises "above levels consistent with our goal"

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