Fed adopts new strategy, widely seen as leading to easier policy
The Federal Open Market Committee on Thursday announced that it has approved changes to its written policy strategy that are widely seen as leading to an easier monetary policy stance over time.
The announcement of the new strategy was timed for Fed Chairman Jerome Powell’s speech to the Jackson Hole economic symposium, to be held virtually this year.“It is hard to overstate the benefits of sustaining a strong labor market, a key national goal,” Powell said in his prepared remarks discussing the policy shift.
It is now the Fed’s view that “a robust job market can be sustained without causing an outbreak in inflation.” “Following periods when inflation has been running persistently below 2%, appropriate monetary policy will likely aim to achieve inflation moderately above 2% for some time,” the new policy says.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As uncertainty threatens U.S. growth, Fed seeks more firepowerA year ago, Federal Reserve Chair Jerome Powell warned fellow central bankers of the significant risks posed by trade policy uncertainty, and the lack of precedents for monetary policy in the face of those unknowns.
Read more »
Breakingviews - Fed policy review will leave market put untouched(Reuters Breakingviews) - Federal Reserve Chair Jerome Powell has been too effective. His pledge to purchase corporate debt, including some with a junk credit rating, has boosted bond and equity prices since March, despite lousy economic projections. Backstopping asset prices is the unspoken precept that underlies the new policy framework he will soon unveil.
Read more »
Dollar on backfoot as investors look for dovish Fed signalsThe dollar wallowed near its lowest level for the week on Thursday as investors looked for hints from Federal Reserve Chairman Jerome Powell that the central bank might tweak its policy framework to help push up inflation.
Read more »
Asia shares pause for breath, lot riding on FedAsian shares touched two-year peaks on Thursday in the wake of Wall Street's record run as cheap cash drove up big-cap tech darlings, although Sino-U.S. tensions caused caution to creep in as the session progressed.
Read more »
Investors price for Fed chair to signal inflation can run higherInvestors are awaiting a pivotal speech by U.S. Federal Reserve chair Jerome Powell on Thursday, positioning for rates to be kept lower-for-longer and inflation to potentially run higher.
Read more »
Dollar sags as investors brace for dovish Fed signalsThe dollar wallowed near its lowest level for the week on Thursday as investors looked for hints from Federal Reserve Chairman Jerome Powell that the central bank might tweak its policy framework to help push up inflation.
Read more »