The Viral Cycle of Expectations Leading to Inflation

The vicious cycle of expectations leading to inflation can be halted in its tracks. In our case, that's 2 to 6 percent. And if we manage to keep inflation steady as promised, people will begin to trust our process. There even if inflation inches up a bit, they will simply go about their daily lives as normal. But once inflation does rear its ugly head, we turn to tools like interest rates.