Powell: Fed to target 2% inflation rate on average

EPA-EFE/JIM LO SCALZO

Federal Reserve Chair Jerome Powell announced on Thursday that the Federal Reserve will target a 2% inflation rate on average over time, but noted the bank will "likely aim to achieve inflation moderately above 2% for some time."

However, Powell said that the Fed "won't hesitate to act" if the inflation "ratchet" above levels consistent with bank's goal. The emphasis will be put on "broad and inclusive" employment, he stressed.

The latest policy shift was motivated by "underlying changes" to the country's economy, Powell explained, including lower estimated economic growth, as well as continuous lower interest and inflation rates.

Breaking the News / ND