Following a more than year-long review, Powell (pic) said Thursday that the Fed will seek inflation that averages 2% over time, a step that implies allowing for price pressures to overshoot after periods of weakness. It also adjusted its view of full employment to permit labour-market gains to reach more workers.
FEDERAL Reserve chairman Jerome Powell unveiled a new approach to setting US monetary policy, letting inflation and employment run higher in a shift that will likely keep interest rates low for years to come.
Following a more than year-long review, Powell (pic) said Thursday that the Fed will seek inflation that averages 2% over time, a step that implies allowing for price pressures to overshoot after periods of weakness. It also adjusted its view of full employment to permit labour-market gains to reach more workers.
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