Federal Reserve's inflation target fudge: what it means for Australians

 Late last week, the chairman of the US central bank announced major changes to the way the US will be targeting inflation in coming years.

Instead of trying to keep inflation around 2 per cent by lowering or raising interest rates, Fed chairman Jerome Powell said the US central bank might let things run a bit hot for a while as the economy bounces back from coronavirus.

That means US interest rates are likely to stay around zero for years, even as the economy rebounds.

Read more: https://www.abc.net.au/news/2020-09-01/feds-fudged-inflation-target-what-it-means-in-australia/12618090