The US FED had dropped its target inflation rate of 2%. What does this signify?
This signifies that the US FED is facing a conundrum. The US FED is feeling the colossal debt stress that it has to create inflation but cannot allow the rising inflation to affect its stimulative monetary policies. Therefore, the US FED is changing its stance so that its stimulative monetary policies can continue to boost the US sagging economic growth.
Please read below to understand more about inflation.
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