[justjim]

Originally Posted by jimjamuser

I believe that the Fed. has the MANDATE to try to keep INFLATION around 2%. They control the prime borrowing rate to achieve the 2% inflation rate. Today with inflation high and rising, they try to dampen economic growth and drive inflation back to 2%. To accomplish this, the Fed must walk a tightrope to bring down inflation without causing a RECESSION. Historically, most often, they have FAILED !

Who gives the mandate of 2% inflation? Keeping inflation at 2% is not sustainable. If there is a mandate (?) it realistically should be more in the 3%-4% range.