TBF - September Fed Meeting: The (Long) Wait For 2% Inflation Begins
Economists were focused on three facets of the U.S. Federal Reserve (the Fed)'s meeting on Wednesday. Importantly, none of these three outcomes were particularly consequential for investors.
1. New forward guidance
Would the Fed clarify its forward guidance on interest rates following Powell's announcement at the annual Jackson Hole, Wyoming, economic symposium about the transition to a new average inflation targeting ((AIT)) framework?
As a reminder, AIT is basically a commitment to keep interest rates lower for longer, allowing inflation to overshoot the 2% objective for a time to compensate for undershoots that normally occur