Federal Bank Chairman Jerome H. Powell announced a major policy shift on 27 August 2020 to average inflation targeting. The decision taken by Federal Bank about proper monetary policy shall continue to reflect a wide array of factors and shall not be influenced by any formula. The revisions to the statement combine to a strong updating of the monetary policy framework. The revision also reflects the way the policy has been conducted these days.
In conducting monetary policy, the focus was on promoting as strong a labour market as possible. Also, efforts would be made constantly to achieve a 2% inflation rate over time.