In other words, the shift in policy is meant to expand strong labor market gains in order to reach more workers, in light of how the U.S. economic expansion prior to the pandemic benefitted minorities and women in finding jobs and the civil unrest that has erupted this summer.
All in all – rates will be lower for longer, much longer, allowing the economy to run hot.
Yields on long bonds took a brief dive just minutes before Powell’s address, but they ticked back up as the Fed Chair laid out his lower-for-longer vision.