For the last 20 years, the Fed has argued that it is targeting an inflation rate of 2%. 

Everyone knows that the real rate of inflation is well above this level. But the Fed is the Fed. And as the primary director of the financial system, the Fed's target rate of inflation is used as a baseline for all major portfolio managers.

Which is why the following story is of MAJOR import:

Powell set to deliver 'profoundly consequential' speech, changing how the Fed views inflation

He is expected to outline what could be the central bank's most active efforts ever to spur inflation back to a healthy level.

"Average inflation" targeting means the Fed will allow inflation to run higher than normal for a period of time.

Source: CNBC.

In simple terms, the Fed is broadcasting that it is going to unleash inflation in a big way.

How big?

The media is presenting Jerome Powell as the antithesis of former Fed Chair Paul Volcker. Volcker is famous for stopping the runaway inflation of the late 1970s/early 1980s when interest rates rose to 19%.