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The Conversation
The Conversation
Veronika Dolar, Assistant Professor of Economics, SUNY Old Westbury

Fed wants inflation to get down to 2% – but why not target 3%? Or 0%?

Inflation Jerome Powell Ben Bernanke Economy
The Fed is taking aim at its inflation target. krisanapong detraphiphat/Moment

What’s so special about the number 2? Quite a lot, if you’re a central banker – and that number is followed by a percent sign.

That’s been the de facto or official target inflation rate for the Federal Reserve, the European Central Bank and many other similar institutions since at least the 1990s.

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