The Fed’s new monetary policy strategy, unveiled at the start of an annual central banking conference, pledges to address “shortfalls” from the “broad-based and inclusive goal” of full employment, a nod to research showing racial income disparities hold back economic growth.
“It’s no news that Powell doesn’t want to raise interest rates,” said Vincent Reinhart, chief economist at Mellon. What is news, Reinhart said, is that the Fed has now enshrined a degree of tolerance for inflation in its guiding document. “Our revised statement reflects our appreciation for the benefits of a strong labor market, particularly for many in low- and moderate-income communities, and that a robust job market can be sustained without causing an unwelcome increase in inflation,” Powell said as he explained the changes at the start of the Kansas City Fed’s central banking conference.
On Thursday, the Fed released a library of staff papers and research on the topic, including one arguing that average inflation targeting would help a broad set of Americans benefit from the economy. Still, the map is fairly blurry: the Fed’s transformation of the way it manages monetary policy included no explicit promises on how long it may keep rates low, or how high it would allow inflation to go. Indeed, Powell said the Fed’s new approach to inflation would not be dictated by an explicit mathematical formula.
Market reaction signaled that, at least for now, investors believe the Fed is serious about its new approach.
Isn’t that the president’s job?
Ever?
The Fed has adopted a listening policy, even listening to low income citizens. Changes in 2020
This is not aimed at getting people back to work. It's aimed at propping up the equity bubble for the top 10%
New Federal Reserve policy: print until economic collapse.
Just get back to work, slaves. Life, liberty, health and happiness, to those who worship man's invention money and the economy. Just like God intended it to be. MAGA DieTrying
Is this the vaccine for the virus? Or just away for the wealthy to become more wealthy? People with no jobs or money seem to have a hard time to get a low interest loan.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Reuters - 🏆 2. / 97 Read more »