The Indicator Podcast - Why Does the Fed Love 2%?

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Inflation in the US is starting to go down. The fed wants to drive it even lower. How low should they go? Today on the show, we're bringing you two stories about inflation from our daily podcast, The Indicator. We do the math and perhaps find a better number. Then we continue our musical journey as we head seaside to hear a shanty about inflation expectations.

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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