Fed: Rates to stay ultra-low even after inflation picks up
August 28, 2020
WASHINGTON (AP) — The Federal Reserve announced a significant change Thursday in how it manages interest rates by saying it plans to keep rates near zero even after inflation has exceeded its 2% target level.
The change means the Fed is prepared to tolerate a higher level of inflation than it generally has in the past. And it means that borrowing rates for households and businesses — for everything from auto loans and home mortgages to corporate expansion — will likely remain ultra-low for years to come.
The new goal states that "following periods when inflation has been running persistently b...
For access to this article please
sign in or
subscribe.
Reader Comments(0)