The Federal Reserve adopted new strategies to overcome the pandemic’s effects
The long-awaited speech of the US
#Federal #Reserve Chairman Jerome Powell finally brought some clarity regarding
the future of the USA's economic state.
The new measures announced by
Jerome Powell are focusing on bringing inflation back to a healthy level,” letting
it run above 2% for some period of time.” Moreover, in the future, the focus
will be on creating a robust job market that can be supported “without causing
an outbreak in inflation.” But, despite the touted robust labor market,
unemployment might stay elevated for a while.
From the experts' point of view,
the support for the labor market is sudden because generations ago, a strong
labor market meant high inflation, and also an increase in interest rates was in
sight.
Powell’s economic outlook is optimistic,
expecting the recovery that started in May and June to continue throughout the
year “with stops and starts.”
After the meeting, in after-hours
trading, USA30 added
260 points.
Sources: reuters.com,
marketwatch.com
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