Since adopting the 2% inflation target in 2012, the Federal Reserve has used this benchmark as a guiding principle for monetary policy. Inflation that is too low can signal weak demand, while high inflation can undermine purchasing power and economic stability.
A stable 2% inflation rate encourages spending and investment, creating an environment conducive to sustained economic growth.
Hitting this target in 2024 represents a delicate balance achieved by a combination of factors: easing supply chain disruptions, moderating demand in sectors like housing, and careful adjustments in interest rates. The question now is whether this balance can be maintained.Read More on speadinfo.com
nadist 11 hours ago |
The 2% Target and Its Importance
Since adopting the 2% inflation target in 2012, the Federal Reserve has used this benchmark as a guiding principle for monetary policy. Inflation that is too low can signal weak demand, while high inflation can undermine purchasing power and economic stability.
A stable 2% inflation rate encourages spending and investment, creating an environment conducive to sustained economic growth.
Hitting this target in 2024 represents a delicate balance achieved by a combination of factors: easing supply chain disruptions, moderating demand in sectors like housing, and careful adjustments in interest rates. The question now is whether this balance can be maintained.Read More on speadinfo.com