link to original reddit post by /u/xghtai737
From this article:
... the Great Recession quickly gave way to secular stagnation, a phase coined by famous economist Larry Summers to describe a period of weak growth and low inflation.
The Fed's new strategy aims to learn from the last recovery and run the economy hot, bucking the decades-long precedent that explicitly links price growth with hiring.
"There was a time when there was a tight connection between unemployment and inflation. That time is long gone," Powell said in a Wednesday press conference. "We had low unemployment in 2018 and 2019 and the beginning of '20 without having troubling inflation at all."
So the Fed says there is no connection between low unemployment and inflation (should have been obvious in the 1970s) ... but it wants inflation anyway.
Quoting the Chicago Federal Reserve web site:
What is the dual mandate? Our two goals of price stability and maximum sustainable employment are known collectively as the "dual mandate."
The Fed now says they don't need inflation to achieve low unemployment. And they are just abandoning price stability in favor of inflation.
So what is the Fed's alleged purpose now? Low unemployment and bailing out debtors - the biggest debtor being the US government?