{"id":440539,"date":"2022-12-09T19:25:48","date_gmt":"2022-12-09T19:25:48","guid":{"rendered":"https:\/\/omni48.com\/?p=440539"},"modified":"2022-12-09T19:52:31","modified_gmt":"2022-12-09T19:52:31","slug":"there-is-nothing-special-about-2-bofa-says-the-world-s-central-bankers-just-made-up-their-inflation-target","status":"publish","type":"post","link":"https:\/\/omni48.com\/news\/there-is-nothing-special-about-2-bofa-says-the-world-s-central-bankers-just-made-up-their-inflation-target","title":{"rendered":"&#8216;There is nothing special about 2%&#8217;: BofA says the world&#8217;s central bankers just made up their inflation target"},"content":{"rendered":"<p>The Federal Reserve has raised interest rates six times this year in its effort to lower inflation&#8212;currently at 7.7%&#8212;to what it considers to be the ideal level of 2%. But how did the central bankers decide that 2% is ideal rather than some other number? It&#8217;s a question several Fed critics have raised. On Friday, Bank of America was the latest to weigh in on the matter, saying bluntly, &#8220;there is nothing special about 2%.&#8221; The Fed has company in its 2% inflation target. Several countries have the same target, seemingly giving more confirmation that 2% is perfect. Bank of America, however, has a different take, saying that the Fed could be reluctant to adjust its 2% target to some other number because it would undermine its credibility. &#8220;Moving the target the first time it is seriously tested undercuts central banks&#8217; credibility, raising real concerns about a slippery slope,&#8221; Bank of America&#8217;s global economist, Ethan Harris, wrote. The Fed&#8217;s 2%<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;The evidence is that steady 4% inflation imposes very small additional costs compared to steady 2% inflation. Either way the economy adapts,&#8221; BofA&#8217;s global economist said.<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22,1],"tags":[],"class_list":["post-440539","post","type-post","status-publish","format-standard","hentry","category-economy","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/omni48.com\/api\/wp\/v2\/posts\/440539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omni48.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omni48.com\/api\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/omni48.com\/api\/wp\/v2\/comments?post=440539"}],"version-history":[{"count":0,"href":"https:\/\/omni48.com\/api\/wp\/v2\/posts\/440539\/revisions"}],"wp:attachment":[{"href":"https:\/\/omni48.com\/api\/wp\/v2\/media?parent=440539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omni48.com\/api\/wp\/v2\/categories?post=440539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omni48.com\/api\/wp\/v2\/tags?post=440539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}