Following the last review, the Fed outlined a policy that became known as flexible average inflation targeting. The move was a stated intent to allow inflation to run slightly over the Fed's 2% target for a period of time in the interest of providing full and inclusive employment across the economy, including for race and gender.

With mounting evidence that tight labor markets do not necessarily boost inflation and facing massive job losses in 2020, Federal Reserve Chair Jerome Powell oversaw a shift in U.S. central bank strategy that put more weight on the goal of full employment and pledged not to use a low jobless rate as a reason in itself to raise interest rates.

Federal Reserve Chair Jerome Powell won’t cut interest rates today, but he might sometime soon. No matter what, he’s in a no-win situation.

Risks of higher unemployment and higher inflation have risen, according to the Federal Reserve. Those factors may prompt stagflation.

The Fed is now hemmed in by a rising risk of stagflation. It doesn‘t know where the economy is headed, or is unwilling to take a position. At this point, “hope

An analysis by Goldman Sachs finds that reducing the independence of central banks like the Federal Reserve can contribute to higher inflation, lower stock prices and a weaker currency.

Markets had a positive week, with the major indexes advancing in the +3% range despite a slowing economy and less than stellar corporate reports.

Federal Reserve Chair Jerome Powell addresses the Economic Club of Chicago at a luncheon at the Hilton last month in Chicago. Powell shared his view of the current state of the U.S. economy, saying that the country’s debt is “on an unsustainable path, not at an unsustainable level.” Audrey Richardson Chicago Tribune/TNS