FED to now target average inflation

The Jackson Hole meeting of the US FED saw the central bank state that they will now move to an average inflation targeting policy rather than a hard target of 2%. What this allows the FED to do is allow inflation to move ahead of 2% without having to raise interest rates. The sub text of this decision is the FED want to keep interest rates low regardless of short term inflation. US treasuries sold off on the news.