Federal Reserve’s 2 Percent Inflation Target Is ‘Worth Keeping,’ Economists Say

A chorus of market watchers believe it might be time to retire this objective.
Federal Reserve’s 2 Percent Inflation Target Is ‘Worth Keeping,’ Economists Say
A cyclist passes the Federal Reserve building in Washington, on Aug. 22, 2018. Chris Wattie/Reuters
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Economists believe the Federal Reserve’s 2 percent inflation target is “worth keeping” and that shifting the goalposts would send the wrong signal to consumers.

Since 2012, the U.S. central bank has officially maintained a 2 percent inflation target, though monetary policymakers had settled on this figure behind the scenes in the 1990s.
Andrew Moran
Andrew Moran
Author
Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."