Ricardo Says 2% Inflation Is Not So Bad

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Recent consumer surveys show people's expectations of future inflation are also starting to tick down. Ricardo is confident that inflation is heading back to 2%. He says he has no doubt the Fed will stick to that plan. Some day lads, we won't be sad if expectations hold.

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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