In historic pivot, Fed shifts away from hard inflation target

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By Jennifer Kang
27 Aug 2020

The Federal Reserve announced on Thursday that it will allow inflation to run higher than the long running 2% target, a long awaited and historic shift in monetary policy that marks the start of a new era that will enable the Fed to keep rates low for longer.

In a speech delivered at the annual Jackson Hole, Wyoming symposium, Fed chairman Jerome Powell presented the revisions to the Statement of Longer-Run Goals and Monetary Policy, which articulates the US central bank's stance on monetary policy and serves as a guidebook for future policy actions. 

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