To gain an edge, this is what you need to know now.
Making The Stock Market Bubble Bigger
In a historic speech, Powell changed Fed’s long standing policy. Here are the key points.
- Previously the Fed was targeting 2% inflation.
- Under the new policy, the Fed will target 2% average inflation. This is a big change with serious implications.
- Since during periods of economic weakness, inflation may fall, during periods of expansion, the Fed will let inflation run higher than 2%.
- Historically the Fed raises interest rates to prevent inflation from rising.