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 Traders Bet Big on Oil Futures Despite A Stagnant Market READ MORE Heraeus Outlines Four Bullish Indicators for Gold's 2024 Outlook READ MORE Asahi vault 30 miles outside NYC added to COMEX approved vault list READ MORE BullionStar Perspectives – Lawrence Lepard – Fiat Endgame – Reinforces need for Sound Money READ MORE Gold Reserves in 2024: Discover Which Countries Hold the Most READ MORE Add a Comment Cancel replyYour email address will not be published.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