WASHINGTON - The US central bank rolled out a major policy change on Thursday that gives greater weight to its mission of maximising employment for the benefit of lower income families, while ratcheting back its emphasis on fighting inflation.
"This change reflects our appreciation for the benefits of a strong labour market, particularly for many in low- and moderate-income communities," Powell said, in a speech unveiling the policy. Powell, in his speech to the annual Jackson Hole monetary policy conference, said the 10 years since the 2008 global financial crisis - when US inflation remained stubbornly below the 2 per cent target - has shown that warnings about low unemployment causing price hikes were exaggerated.
HIGH UNEMPLOYMENT FOR YEARS But Kathy Bostjancic of Oxford Economics said the move"largely just codifies" current Fed policy. The Fed chief grew passionate as he described hearing low-income workers explain the dramatic impact of more jobs.
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