The Fed will soon reveal how it will make subtle and profound changes to US monetary policy, or formally announce that it will take a more liberal view of inflation. < / P > < p > in addition to helping to save the US economy during the outbreak, US Federal Reserve Chairman Powell and other Federal Reserve officials will complete their first ever assessment of the dual pillar monetary policy objective by 2020. The assessment process began in early 2019 and includes a nationwide “fed listening” tour. Now they are about to release the assessment results, possibly as early as September. < / P > < p > “this will send a clear signal to the market that the Fed will not only temporarily tolerate inflation above 2%, but will also support it and work in this direction.” Several other economists interviewed have made exactly the same prediction, arguing that in fact many Fed officials have been pursuing this strategy for months, and investors have the same expectations. < p > < p > the 10-year breakeven inflation rate (the market measure of inflation expectations for the next decade) has rebounded to 1.66% from its low of 0.47% in March. Bill Merz, senior portfolio strategist and head of fixed income research at U.S. bank wealth management, said: < / P > < p > more details about when and how the Fed will complete the assessment are likely to be released in the minutes of the Federal Open Market Committee (FOMC) meeting on July 28-29 released by the Federal reserve this week. < / P > < p > this is a thorny issue for the Fed. Low inflation, coupled with slow economic growth, means interest rates will remain historically low. This weakens the Fed’s ability to withstand future recessions, which could deepen and last longer, cause more job losses and destroy more businesses. The current economic recession caused by the epidemic is a good example. When the outbreak of the epidemic crisis, the lower limit of the target range of the Federal Reserve’s benchmark interest rate was only 1.5%. In March, the Federal Reserve cut interest rates rapidly to near zero just two times, but unfortunately it was far from enough to cope with the worst recession since the great depression. < / P > < p > the Federal Reserve was forced to stabilize the market again by buying bonds on a large scale and push down real borrowing costs. However, it is not clear how effective these measures have been. However, the problem was obvious long before the epidemic swept the United States. At the beginning of 2020, many Federal Reserve officials believed that sometimes the inflation rate would be slightly higher than the target, so that the average inflation rate would reach about 2% over time, and the situation would be improved. < / P > < p > however, for some Fed observers, it seems useless to draw such a conclusion from this much publicized framework assessment. After much deliberation, the Federal Reserve finally rejected a series of bolder measures. In order to achieve the goal of nominal GDP, it chose to give up the goal of raising inflation. Federal Reserve officials are also cautious in reviewing possible measures that could be taken after interest rates fall to zero. They believe that using negative interest rates in the US is a bad choice, and they are not keen on the idea of limiting US bond yields (although they do not completely rule out the possibility of using it). < / P > < p > in the end, they still believe that the current instrument (bond purchase and communication of future interest rate path) is the best choice. In addition, they will add an important target, that is, the long-term average inflation rate should be close to 2%. < / P > < p > however, the transition may stop there. Economists say that when the Fed explicitly proposes a new concept of average inflation, officials may not implement it as an iron rule, and they may not even mention the word “average.”. < / P > < p > from the very beginning of the assessment, Federal Reserve vice chairman Clarita promised to the public that “evolution, not reform,” seems to be the promise that the Federal Reserve will soon deliver. But when the Fed finishes this assessment, there is still a question. Is this enough?