Prepared to accommodate a higher level of inflation.
Federal Reserve Chairman Jerome Powell announced last week that inflation rates will now be allowed to exceed its previously held 2% ceiling. In the speech accompanying the announcement, Powell explained that although inflation was once the nation’s biggest economic threat, current unemployment rates make that an unlikely outcome of the pandemic slump.
“Our revised statement reflects our appreciation for the benefits of a strong labor market, particularly for many in low- and moderate-income communities and that a robust job market can be sustained without causing an unwelcome increase in inflation.” Interest rates will likely remain close to zero for the next few years to help Americans recover from a tumultuous 2020.
As the Lord Leads, Pray with Us…
- For Chairman Powell as he implements his vision for financial leadership and aid.
- That the Federal Reserve would be granted God’s wisdom as they help the American economy recover.
- For Congress as they work together to implement supplementary ways to stimulate our economy.
Sources: AP
