The Federal reserve has left monetary policy unchanged today, which is unsurprising given the decent activity and employment backdrop and the recent rise in inflation. Nonetheless, the Fed remains wary, suggesting that the pandemic will “continue to weigh on economic activity, employment and inflation in the near-term, and pose considerable risks to the economic outlook over the medium term”. The key part of the statement surrounds the updated guidance on policy in light of the publication of the Fed’s monetary policy strategy review which heralded “average” inflation targeting. They have opted for “the Committee ... (full story)