Powell set to deliver 'profoundly consequential' speech, changing how the Fed views inflation

[brucejoel99]

https://www.cnbc.com/2020/08/24/powell-set-to-deliver-profoundly-consequential-speech-changing-how-the-fed-views-inflation.html

• Fed Chairman Jerome Powell [will] speak Thursday during a virtual version of the Fed's annual Jackson Hole, Wyoming conference.
• He is expected to outline what could be the central bank's most active efforts ever to spur inflation back to a healthy level.
• "Average inflation" targeting means the Fed will allow inflation to run higher than normal for a period of time.
• The effort will be the reverse of former Fed Chairman Paul Volcker's rate hikes instituted to quash inflation in the 1980s.

Exciting!

[brucejoel99]

This is honestly a long time coming. Fiscal stimulus is preferable since it's less conducive to speculation & bubbles, but this is a good step in acknowledging that we can accept some inflation.