US Federal Reserve Chairman Jerome Powell gives a press briefing after the surprise announcement the FED will cut interest rates on March 3, 2020 in Washington, DC.
Eric Baradat | AFP | Getty Images
Federal Reserve chair Jerome Powell just announced the central bank’s policy shift on letting inflation tick higher amid a coronavirus pandemic that has dragged the U.S. economy into a recession.
While inflation can be scary to investors, history shows that company profits increase when inflation is rising. In every decade since the 1980’s, an uptick in inflation causes an acceleration of profits, according to data from Fidelity Investments.