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Christoph Eling
Private Investor
Asked a question 2 months ago

Whats you'r conclusion re Powell Aug 27th inflation announcement to allow more than the standard 2% target?

Where am I?

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My view here is that all the big CB's have failed to generate inflation thus far over the last couple of decades beyond a normal cyclical pick up, which then falls again. Can they actually achieve this or is this just talk to try to get the YC to steepen?

https://www.cnbc.com/2020/08/27/powell-announces-new-fed-approach-to-inflation-that-could-keep-rates-lower-for-longer.html3

  • Fed Chairman Jerome Powell announced a major policy shift Thursday to “average inflation targeting.”
  • That means the central bank will be more inclined to allow inflation to run higher than the standard 2% target before hiking interest rates.
  • In addition to the inflation change, the Fed changed its approach to employment in a way that will focus on those at the lower end of the income spectrum.