The head of the US Federal reserve said about easing the policy on inflation
The us Federal reserve, which serves as the country's Central Bank, is easing its policy on inflation, now the target is 2% on average, and a slight increase is allowed. This was stated at an Internet Symposium by the head of the Federal reserve Jerome Powell.
According to him, the fed is "vigorously updating" its policy in this area. The financial regulator will aim to ensure that " in the future, inflation will average 2%." He explained that "after periods when inflation has been below 2%, the goal of proper monetary policy is likely to be to raise inflation moderately above 2% for some time." Previously, the fed considered inflation at the level of exactly 2% as an indicator of a healthy economy.
"Many may find it illogical that the fed could want to raise inflation," Powell said. "But if inflation is too low for a long time, it can pose a serious threat to the economy," he explained.
According to the Wall Street Journal, this easing of policy may mean that the fed will wait longer before raising the interest rate.