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In the view of the Goldman Sachs’ Research Team, the US Federal Reserve’s (Fed) aggressive average inflation targeting (AIT) policy would keep rates very low for a long period of time.

Key quotes (via Forbes)

“Last week, Fed Chair Jerome Powell announced that the Fed will now seek to target inflation that averages 2% over time, meaning that it can allow inflation to surpass that level during periods of economic recovery.”

“Keeping rates at their current levels means that borrowing costs for both businesses and consumers will stay lower for longer – it will be cheaper for small businesses to get loans, for instance, and cheaper to buy a home with a mortgage.”

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