Federal Reserve is NOT shooting for 2% inflation this year

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This video talks about the Federal Reserve's inflation target and how it is misunderstood by some. The speaker claims that the Federal Reserve is not targeting a 2% annual inflation rate but a 2% long-run average inflation rate.
Specifically, the video says that the Richmond Branch of the Federal Reserve has explicitly stated that they're shooting for a long run average inflation Target of 2%, not an annual inflation rate of 2%. The speaker calculates the average inflation rate since 2012 and finds it to be 2.6%. They argue that based on this calculation, to meet the 2% average inflation target, the FED would need to run inflation at 1.44% for the next 12 years.
In conclusion, the video argues that the Federal Reserve is targeting a long-run average inflation rate of 2%, not a 2% annual inflation rate. This distinction is important because it means that the Federal Reserve may allow inflation to run higher in some years in order to offset periods of lower inflation.
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Can you make a short of what's happening today? Everything is in the negative.

magnumdong
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Went to Micky D's today for breakfast Mc muffin meal $13.00 help me to make it make sense.

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