In 2020, officials revamped their approach to setting rates, focusing on the risks brought on by near-zero interest rates and low prices. Today, officials are preparing to scrap that approach, now viewed as no longer relevant when facing the opposite problem of high and more volatile inflation.

On Aug.22, Federal Reserve Chair Jerome H. Powell said a job market “may warrant” interest rate cuts in the future at an economic conference in Jackson Hole, Wyoming.

The Fed chair said the decision would be based on incoming economic data, signaling it was not a response to Trump’s calls for lower borrowing costs.