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That the Fed plans to leave its key rate pinned near zero even after inflation has surpassed the central bank’s target level — at least for a while.
The widespread expectation is that the Fed is poised to adopt a more flexible policy that would allow inflation to overshoot its 2% annual target for some period to compensate for the many years in which inflation has run below 2%. called “average inflation targeting.”
What’s new is the message that the Fed is prepared to accept a level of inflation that in the past it would not have tolerated while keeping rates near record lows.
Consumer confidence has tumbled. Though the stock market and home sales are surging, the economy is struggling to grow, and millions face potential evictions from their homes. “The Fed is in a position where they see the recovery is losing momentum at a time when the economy is in a deep hole, and that is worrisome,” about a possible double-dip recession.
Comment:
It sounds to me like the Fed knows for SURE inflation might come, far more than 2% so informing everyone ahead of time so when it happens against their will, its what they expected, and for everybody not to worry they won’t kill stocks bonds and real estate, or even GOLD with higher rates.
Their stupid paper money souped up “four wheel drive economy” is now stuck in a far worse place than if they left it as it was, a normal two wheel drive economy that only gets stuck on the shoulder and not 4 miles away from roads in the woods or desert Eh?? 🙂
https://www.pbs.org/newshour/economy/powell-edges-toward-loosening-the-feds-stance-on-inflation