Below is a quick summary of the article in the WSJ by Nick Timiraos, here is the link to the full article for those who want more details.Strategic U‑Turn in the WorksThe Federal Reserve plans to retreat from key elements of its 2020 monetary policy framework, which allowed inflation to run modestly above its 2% target to compensate for past undershoots and deprioritized the risks of a too‑low unemployment rateJackson Hole Speech as the RevealPowell is expected to unveil these framework changes in his final Jackson Hole address as Fed chairNo Immediate Policy ImpactThe revisions will not affect short‑term rate decisions but reflect a broader, long-term shift in how the Fed balances its dual mandate of price stability and maximum employmentOrigins of the 2020 StrategyThe 2020 strategy responded to the challenges of near‑zero interest rates and subdued inflation, aiming to prevent premature rate hikes and support job growth during economic stagnationLessons from the 2021–22 Inflation SurgeCritics argue that the 2020 framework contributed to delayed rate hikes amid rising inflation. Indeed, rate increases only began in March 2022, well after inflation surged to levels not seen in decadesDebate Over Framework vs. Forecast ErrorsEconomists are split on the reasons for the delay: some blame the framework for overemphasizing employment, while others point to flawed inflation forecasts.Planning for a Resilient FutureThe Fed aims for a more robust policy structure capable of handling shocks that simultaneously push inflation and unemployment upward, one that isn’t easily overturned by short-term economic fluctuation This article was written by Arno V Venter at investinglive.com.