Importance of 2% Inflation Target

For the general public, for those working families and people, why 2%?

Why is getting it to 2% so important?

So that's, that has become the globally agreed,

essentially all major central banks target 2%

inflation in one form or another.

And how does that help my Nevada families?

How does that help people?

I'll tell you how it does.

And it's, I guess it's obviously not,

it's not obvious how that is,

but what a 2% inflation, to have people believe that

inflation is going to go back to 2% really anchors inflation there.

Because, you know, the evidence is,

and the modern belief, is that people's expectations about

inflation actually have a real, an effect on inflation.

If you expect inflation to go up 5%, then it will.

You know, if everyone kind of expects that,

because that's what businesses and households will be expecting,

and it will kind of happen because they expect it.