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Pirate's Cove
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Nov. 9, 2019 8:41 pm
For years, involving many administrations,
The US Fed has had a goal of 2% inflation.
Today the favorite measure of the Fed is the CORE Personal Consumption Expenditure Index (PCE),
before it was the CPI.
With 2% inflation $1.00 goes to $0,50 in slight less than 35 years and goes to $0.25 in slight more than 68.5 years.
So in less than a human life span the value of US money is diminished by 75%.
Why isn't the US Fed goal zero inflation???
It can be argued that the Fed did not publicly admit the 2% until 2012, but Ballard, President of the St. Louis Fed, says 2% has been the Fed's target since 1995.
