The Fed announces a change in its inflation policy

Speaking on video at the Annual Central Bankers Meeting, Federal Reserve Chairman Jerome Powell today revealed that the Fed will let inflation exceed its 2% target in order stimulate the labor market. The US Federal Reserve's Monetary Policy Committee (FOMC) formally amended the statement on long-term goals and monetary policy strategy adopted in 2012 to introduce the principle of an inflation targeting policy based on on an average which will allow “moderately” to exceed 2% after a period when inflation was below this target.