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 Why Gold & Silver Prices Could Skyrocket in an AI World – Tavi Costa & Alan Hibbard READ MORE Infographic: US Government and US Banks in the Gold Market READ MORE Gold Rush 2.0: Australian Miners Poised for M&A Spike Amid Soaring Prices READ MORE The Deadline To Turn in Your Gold – May 1st, 1933 READ MORE U.S. GDP Growth Stumbles to 1.6% in Q1, Missing Economic Forecasts READ MORE Add a Comment Cancel replyYour email address will not be published.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