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OscarCunningham 6 hours ago

This is a deliberate choice by Congress to give the Fed a mandate to target 2% inflation. In particular Congress hasn't given them any instruction to try to make up for mistakes. If inflation overshoots in one year then they don't try to undershoot in the next year. They just keep trying to hit 2% inflation.

So if retailers tried to lower prices to pre-COVID levels then they would fail. The Fed would see the falling prices and cut rates until 2% inflation was achieved.

adrianN 5 hours ago | parent [-]

At least where I live I have the feeling that groceries got expensive faster than 2% per year for a number of years now.