# Federal Reserve's inflation target fudge: what it means for Australians - ABC News

> The Federal Reserve announced a shift to targeting average inflation, saying it may let inflation run above 2% for a time as the economy recovers from coronavirus. Markets expect U.S. rates to stay near zero for years, and the Australian dollar rose to 74 US cents, its highest since August 2018.

- Date: 2020-09-01 · published 2020-09-01T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/51368-federal-reserve-s-inflation-target-fudge-what-it-means-for-australians-abc-news
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

Prolonged low U.S. rates weaken the dollar, which typically supports dollar-priced commodities and raises the local-currency value of U.S. exports.

## Read by commodity

- DXY: bearish ▼
- AUDUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-11-01 | [Analysis When the US Federal Reserve acts, the Australian economy braces for damage](https://feedsoft.ai/events/56332-analysis-when-the-us-federal-reserve-acts-the-australian-economy-braces-for.md) | +0.2% | +0.9% |
| DXY | 2020-09-15 | [Federal Reserve to meet after sharp changes to its outlook \| AP News](https://feedsoft.ai/events/51038-federal-reserve-to-meet-after-sharp-changes-to-its-outlook-ap-news.md) | +0.6% | +0.2% |
| DXY | 2020-10-21 | [The Federal Reserve’s New Monetary Policy Strategy](https://feedsoft.ai/events/50554-the-federal-reserve-s-new-monetary-policy-strategy.md) | -0.2% | -1.6% |
| DXY | 2026-01-28 | [Australia's hotter Q4 core inflation fuels bets for rate hike next week \| Reuters](https://feedsoft.ai/events/21313-australia-s-hotter-q4-core-inflation-fuels-bets-for-rate-hike-next-week-reuters.md) | +0.4% | +0.3% |
| DXY | 2019-06-02 | [The Australian dollar is grinding higher as expectations for rate cuts from the US Federal Reserve build](https://feedsoft.ai/events/58849-the-australian-dollar-is-grinding-higher-as-expectations-for-rate-cuts-from-the.md) | -0.8% | -1.8% |

## Sources

- abc.net.au: https://www.abc.net.au/news/2020-09-01/feds-fudged-inflation-target-what-it-means-in-australia/12618090

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.