In emphasizing the importance of a strong labor market and aiming for moderately faster price gains, Mr. Powell and his colleagues laid the groundwork for years of low interest rates. That could translate into long periods of cheap mortgages and business loans that foster strong demand and solid job markets. In conjunction with his remarks, the Fed released an outline of its long-run policy strategy. “Our revised statement emphasizes that maximum employment is a broad-based and inclusive goal,” Mr. Powell said in the remarks. “This change reflects our appreciation for the benefits of a strong labor market, particularly for many in low- and moderate-income communities.”

Source: New York Times August 27, 2020 13:18 UTC