Dan North's latest blog: The Federal Reserve Shifts To “Inflation Targeting”
The U.S. Federal Reserve has made an important policy shift.
In a pivotal but widely expected speech on 27 August at the Federal Reserve’s annual Jackson Hole retreat, Fed Chairman Jerome Powell announced a significant shift in monetary policy to “average inflation targeting”. Previous Fed policy had been driven by the notion that when unemployment becomes too low, inflation will emerge, a relationship known as the “Phillips Curve”. That theory has broken down significantly since the Great Recession. Read Dan North's blog today