{"id":1263,"date":"2020-08-28T05:51:57","date_gmt":"2020-08-28T05:51:57","guid":{"rendered":"https:\/\/businessner.com\/?p=1263"},"modified":"2020-08-28T05:51:57","modified_gmt":"2020-08-28T05:51:57","slug":"federal-reserve-might-announce-a-major-policy-shift-for-a-broader-economy","status":"publish","type":"post","link":"https:\/\/businessner.com\/federal-reserve-might-announce-a-major-policy-shift-for-a-broader-economy\/","title":{"rendered":"Federal Reserve Might Announce a Major Policy Shift for a Broader Economy"},"content":{"rendered":"

Federal Reserve Chairman Jerome Powell said that they are willing to run higher inflation to support the pandemic hit labor market and the broader economy, announced in a major policy shift Thursday<\/a>.<\/p>\n

Mr. Powell termed the policy shift as \u201crobust updating\u201d of the years-old traditional fed policies. The Federal Reserve formally agreed to a term called \u201caverage inflation targeting.\u201d<\/p>\n

The new policy will allow the economy to run moderately higher inflation than the benchmark 2%, according to the reports.<\/strong><\/p>\n

The policy was taken from a blueprint adopted in 2012. The blueprint is known as \u201cStatement on Longer-Run Goals and Monetary Policy Strategy.\u201d<\/p>\n

It addressed the general economy and the interest rate approach of the fed.<\/p>\n

More Retail Stories:<\/strong> Walmart Sales Dropped As the Stimulus Checks are Running Out<\/a><\/p>\n

More Market Stories:<\/strong> SpaceX is ranked third in the Unicorn List<\/a><\/p>\n

Federal Reserve Will Adjust the Interest Rate Hike Policy Linked to Unemployment<\/h2>\n

The new policy shift will allow a balance between the interest rate and inflation when unemployment rates fall. Historically, fed had a traditional belief that lower unemployment leads to a higher level of inflation.<\/p>\n