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The Fed wants to bring inflation down to 2%. But why not 3%? Or 5%?

by Matt Levin

Dec 15, 2022

There's not much evidence to suggest that 2% leads to economic magic.

Federal Reserve Chair Jerome Powell on Wednesday reiterated the importance of the central bank's 2% inflation target. Backing off that number now could send the wrong message, some economists believe.

Win McNamee/Getty Images

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