Averaging through its recent fluctuations, inflation appeared to be running near the Committee’s 2 percent longer-run objective; with longer-term inflation expectations stable, members anticipated that inflation over the medium run would be at or below that rate.
Sounds ok, right?
How many years do you work? Say, from age 20 – 65, or 45 years.
2% ^ (45 – 1) = 2.3901
That is, one dollar of goods at age 20 requires $2.39 to buy at age 65.
This is basic arithmetic. If you do not understand it then you have no business being dog catcher, say much less the leader of a political party at a county, state or federal level, nor a candidate for state or federal office.
And incidentally, the long-run inflation rate is actually closer to 3%, which means that $1 of goods at age 20 requires $3.67 to buy at age 65.
Do you define that as “stable prices”?
The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.
Is a 10 year Treasury rate (long-term) of 1.498% “moderate” or is it extremely low?
Is debasing your purchasing power to the extent that for every dollar of goods when you’re 20 you need more than $3 at age 65 “stable prices”?
The Federal Reserve has, for almost exactly 100 years, serially and intentionally violated its legal mandate, and not one of the Presidential Candidates currently in the race, including especially the one who claims to be for “Liberty”, Gary Johnson, has the guts to call them on the serial, intentional and “in your face” violation of their legal mandate.
Act with honor or be called on your dishonor, candidates and political “leaders.”
Each and every month.