In August 2020, Federal Reserve Chair Jerome Powell announced a change in the Fed's inflation strategy: they would be implementing a strategy called average inflation targeting (AIT), which allows inflation to move above and below the target rate of 2% so that it averages out to 2% over time. This differs from the previous strategy of traditional inflation targeting, in which the intent is to return inflation to the 2% target regardless of how long it has deviated from that rate.
