Fed breakthrough, low rates even if inflation above 2%

(ANSA) - NEW YORK, AUG 27 - Turnaround for the Fed. At the end of a long period of review of its monetary policy, the American central bank opens up to the possibility of leaving rates low even if inflation exceeds 2%. The cost of money can therefore remain close to zero even with low unemployment and inflation above 2%. This was stated by Jerome Powell, however reiterating that the Fed's target remains an average inflation of 2%.
   Wall Street opens positive with the Fed's historic move, which paved the way for an era of low rates with greater inflation flexibility. European stock exchanges are more cautious.
   "With the ever-changing economy, Fed's strategy to hit its targets must adapt to new challenges that emerge," says Powell, explaining why the Fed's revised monetary policy strategy was launched two years ago. "one of the objectives of the review was to take lessons" from the past and identify "changes in our policy that will allow us to strengthen our ability to meet the goals of maximum employment and price stability." (HANDLE).