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Why the Fed Picked 2 Percent as an Inflation Target

Eli Kronenberg· ·7 min read · 0 reactions · 0 comments · 2 views
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Why the Fed Picked 2 Percent as an Inflation Target
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Eli Kronenberg / July 24, 2026 Why the Fed Picked 2 Percent as an Inflation Target The figure is intended as a signal to markets and consumers that the central bank aims for price stability. Unlocked Why Markets Work Illustration by Noah Hickey/The Dispatch (Tom Williams/CQ-Roll Call, Inc via Getty Images). Illustration by Noah Hickey/The Dispatch (Tom Williams/CQ-Roll Call, Inc via Getty Images).

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Eli Kronenberg / July 24, 2026 Why the Fed Picked 2 Percent as an Inflation Target The figure is intended as a signal to markets and consumers that the central bank aims for price stability. Unlocked Why Markets Work Illustration by Noah Hickey/The Dispatch (Tom Williams/CQ-Roll Call, Inc via Getty Images). Illustration by Noah Hickey/The Dispatch (Tom Williams/CQ-Roll Call, Inc via Getty Images). Audio Turn any article into a podcast. Upgrade now to start listening. Text Size Members can share articles with friends & family to bypass the paywall.

Excerpt limited to ~120 words for fair-use compliance. The full article is at The Dispatch.

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