Are Expectations of Inflation Getting Out of Whack?

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The government's consumer price index came out this week. It shows prices for goods and services in December were 6.5% higher than a year ago. But that's the sixth month in a row it's gone down. So that means inflation is actually easing up.

If the Fed had a mantra to go along with its mandate, it might well be "two percent." We look into how that became the target inflation rate, why some economists are calling for a change and how the inflation rate becomes unanchored.

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