Average inflation targeting: what is it and what does it mean for investors?

City A.M. | Sep 15, 2020 at 4:44 PM
  • Late-August saw the Federal Reserve (Fed) hold its keenly-watched annual Jackson Hole Economic Policy Symposium.
  • If the level of inflation went above target the central bank would raise rates, to bring the rate of price increases back toward target, and vice versa.
  • The initial market response has seen a “bear steepening” move in the US yield curve, where yields on longer maturity bonds rise more than yields on shorter maturity bonds.