Wall Street Week Hitting the mark: Fed's Inflation Target, Tale of NYC Office Real Estate
Feb 1, 2025
Explore the origins of the Federal Reserve's 2% inflation target and how it's perceived differently across the U.S. Delve into the challenges facing New York City's office real estate, contrasting premium buildings with struggling ones. Discover the evolving dynamics of the market, influenced by remote work trends and changing tenant expectations. Plus, hear how a quirky story about da Vinci ties into modern efficiency and the importance of seeking help for personal growth!
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2% Target Origin
- The 2% inflation target isn't arbitrary.
- It originated in New Zealand in the 1990s due to high inflation.
New Zealand's Inflation Target
- New Zealand, facing double-digit inflation, aimed for zero inflation.
- This evolved into a 0-2% target, then a 2% midpoint target.
Fed's Adoption of 2% Target
- The Fed adopted the 2% target in 2012 for transparency.
- John Williams, then at the San Francisco Fed, aimed for clarity on a "good" inflation rate.