It's Thursday, August 27, 2020, just after market close in New York.

This is the Real Vision Daily Briefing.

I'm Ash Bennington joined shortly

by Tom Thornton, founder of Hedge Fund Telemetry.

But first with the day's stories, Nick Kureya.

Thanks, Ash.

In his speech at the annual Jackson Hole Symposium this morning,

Fed Chair Jay Powell gave an official update to the Fed's policy on inflation targeting.

It was one of the most significant revamps in

their policy strategy since 2012. Having deliberated on these changes for the past year and a half,

the Fed is seeking to average out their inflation target of 2% over the long term.

In other words, in periods where inflation consistently is under 2%, the Fed will structure

monetary policy to aim right above the 2% threshold to average it out and meet their target

over time. Since setting the inflation target at 2% in 2012, the Fed has only met

that a few times in the past eight years, averaging about 1.4%.

Pal today had said, quote, the persistent undershoot of inflation from our 2% longer run objective

is a cause for concern, end quote.

Averging out their inflation targeting would help them avoid quote an adverse cycle of ever lower inflation and inflation expectations, end quote.

An economy that thrives on credit and its growth, a deflationary environment causes the debt burden to increase in real terms.

Low inflation is also a direct contributor to low rates, which, when an economic downturn occurs,

significantly hampers the central banks's ability to support the economy

through a recessionary period. Our new statement explicitly acknowledges the

...