The curious case of the 2% inflation target and why most central banks won’t let it go.
Data & financial journalist covering global economics and policy
The curious case of the 2% inflation target and why most central banks won’t let it go.
Persistently high inflation makes this reduction a tricky one. The interest rate cut is the first in Trump’s second term as well as the first in 2025.
U.S. inflation dropped to 2.4% in March as consumer prices fell slightly, easing from 2.8% in February. The dip comes amid new tariffs from President Trump and ongoing Fed caution on interest rate cuts. Food prices, however, continued to rise—egg prices surged 60.4% year-over-year.
The Federal Reserve lowered interest rates for the first time since 2020.