Jerome Powell and his colleagues at the Federal Reserve have a North Star – a 2% target for the U.S. inflation rate. It's more than a North Star. It's their religion, their obsession, their reason for living. They do everything possible to reach the 2% target inflation rate.
What's so magical about a 2% inflation rate? Who says a 2% target is right, and what happens when we finally reach the 2% target? What do we, the individual investors, should know about the inflation target?
In today's episode, I'll explore the accidental origin story of the 2% inflation rate and discuss what we, the individual investors, should learn from the story.
Resources:
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