According to the U.S. Federal Reserve, the central bank will be allowing inflation to run up higher than 2% for a period of time. The Fed also said that it wouldn’t hold a bias toward the labor markets and the central bank will hold to its new policy framework.
“The Committee seeks to achieve inflation that averages 2% over time and therefore judges that, following periods when inflation has been running persistently below 2%,” the Fed explained on Thursday.
“Appropriate monetary policy will likely aim to achieve inflation moderately above 2% for some time,” the central bank added. Following the Fed’s major policy shift to let inflation run more rampant, a few analysts and economists commented on the central bank’s new direction. Andy Yee, a senior director of policy at Visa tweeted about the Fed’s latest move to let inflation run hotter than usual.
“Jerome Powell’s speech today will be for the history books,” Yee said. The Visa executive continued:
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