# Fed’s new inflation goal lifts stocks and dents bonds

> US stocks rose and Treasury yields climbed after Powell said the Fed would target an average 2% inflation rate, allowing inflation to run above target for a time. The 10-year yield rose to 0.75%, and the S&P 500 set a new intraday high above 3,500.

- Date: 2020-08-27 · published 2020-08-27T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/51526-fed-s-new-inflation-goal-lifts-stocks-and-dents-bonds
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Looser monetary policy and rising yields are a macro backdrop that can support commodities as inflation hedges, while a firmer dollar can weigh on them. The direct effect on feed prices is limited.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-06-13 | [GLOBAL MARKETS-Inflation fears grip markets as bonds, stocks extend selloff](https://feedsoft.ai/events/9637-global-markets-inflation-fears-grip-markets-as-bonds-stocks-extend-selloff.md) | +1.0% | +2.9% |
| DXY | 2022-10-18 | [Dollar Appreciation and Inflation \| Richmond Fed](https://feedsoft.ai/events/39035-dollar-appreciation-and-inflation-richmond-fed.md) | +0.3% | -3.6% |
| DXY | 2023-02-02 | [USD falls on Fed slowing inflation comments, gold and base metals boosted \| IG International](https://feedsoft.ai/events/37235-usd-falls-on-fed-slowing-inflation-comments-gold-and-base-metals-boosted-ig.md) | +1.3% | +2.1% |
| DXY | 2021-10-22 | [Powell says inflation risks rising, but Fed can be 'patient' \| AP News](https://feedsoft.ai/events/44436-powell-says-inflation-risks-rising-but-fed-can-be-patient-ap-news.md) | -0.2% | +1.4% |
| DXY | 2021-01-25 | [Fed set to look beyond possible post-pandemic inflation shock](https://feedsoft.ai/events/49071-fed-set-to-look-beyond-possible-post-pandemic-inflation-shock.md) | +0.4% | +0.3% |

## Sources

- ft.com: https://www.ft.com/content/efdfe123-63ae-4698-9c91-6b77c366c050?syn-25a6b1a6=1

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