New York (CNN Business) The Federal Reserve announced a major strategy shift Thursday that will likely keep interest rates low for longer to let prices rise and jobs flourish. The Fed's new strategy emphasizes that its mandate to achieve maximum employment is a "broad-based and inclusive goal." They point to the 50-year low in unemployment prior to the pandemic that coincided with low inflation. "This change may appear subtle, but it reflects our view that a robust job market can be sustained without causing an outbreak of inflation," Powell said. Bubble fearsThe makeover to the Fed's strategy is being closely watched by Wall Street because the central bank's tactics have a huge impact on financial markets.

Source: CNN August 27, 2020 13:13 UTC