Behind the Number: Unpacking the Fed's 2% Inflation Target The Federal Reserve’s 2% inflation target, established in 2012, serves as a benchmark for maintaining price stability and economic health. Recent data shows inflation moderating towards this goal, with August’s Consumer Price Index rising 2.5% annually. This trend, coupled with a slowing labor market, suggests the Fed may consider rate cuts soon. The 2% target provides a buffer, allowing the central bank to adjust interest rates as needed to support economic growth and employment without risking deflation. This approach gives the Fed flexibility to respond to economic fluctuations while maintaining long-term price stability. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Gold Retreats from All-Time Highs as Traders Eye Upcoming U.S. Inflation Data READ MORE Gold's Golden January: Historical Trends Suggest a Shiny Start to 2024 READ MORE Gold Prices Soar to Unprecedented Heights Amid Anticipation of Fed Rate Cuts READ MORE FBI Alerts Public to 'Courier Scam' Targeting Seniors' Life Savings READ MORE Trump Assassination Attempt Fuels 'Trump Trade' Surge in Global Markets READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment