Question

What is the “Goldilocks” level of inflation the federal reserve likes to keep?

Answer 1

The "Goldilocks" level of inflation that the Federal Reserve aims for is typically around 2%. This level is considered neither too high nor too low, promoting stable economic growth while minimizing the risks of deflation or excessive inflation. The 2% target is seen as a way to provide a buffer that supports monetary policy effectiveness and helps maintain price stability.