Jerome Powell takes more relaxed position on inflation
The Fed says its decisions will be informed by its assessment of ‘shortfalls of employment from its maximum level’
Washington — Federal Reserve chair Jerome Powell announced a new approach to monetary policy on Thursday that takes a more relaxed stance on inflation and on its view of how low US unemployment can go.
Powell said the Fed would seek inflation that averages 2% over time — a step that implies allowing for price pressures to overshoot after periods of weakness. Its shift on maximum employment will allow labour-market gains to run more broadly...