Article Hero

The Federal Reserve decided on 2% average inflation

1598608099.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
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. 

Read more about the pandemic’s effects over the American economy here!

Sources: reuters.com, marketwatch.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.