Story perspectives

Fed Resets Policy to Balance Employment and Inflation

8/29/2025

35 3

Summary

Story summary

Fed Chair Jerome Powell announced a policy framework reset at the Jackson Hole Economic Symposium on August 22, 2025.
The new framework focuses on balancing maximum employment with stable prices amid inflation risks.
Monetary policy will be data-driven, reflecting the dual mandate's risk balance.
The Fed will adopt flexible inflation targeting without committing to the previous 2% average inflation target.
The strategy clarifies the Fed's response to conflicts between employment and inflation objectives.

1 of 1

Story summary

Fed Chair Jerome Powell announced a policy framework reset at the Jackson Hole Economic Symposium on August 22, 2025.
The new framework focuses on balancing maximum employment with stable prices amid inflation risks.
Monetary policy will be data-driven, reflecting the dual mandate's risk balance.
The Fed will adopt flexible inflation targeting without committing to the previous 2% average inflation target.
The strategy clarifies the Fed's response to conflicts between employment and inflation objectives.