4.8 • 692 Ratings
🗓️ 11 August 2025
⏱️ 38 minutes
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0:00.0 | Is 2% inflation dead? |
0:05.8 | Here's what it means if the Fed changes the rules. |
0:08.9 | Right. |
0:09.2 | So if you guys may or may not know, for years there was hardly any inflation. |
0:14.2 | And then when the dollar decoupled from gold in the 70s, we started to see inflation. |
0:19.0 | And the Fed at some point said, okay, our inflation target is 2%. |
0:23.8 | So it was never supposed to be anything, but now it's 2%. Now they're actually talking about maybe raising it, right? |
0:30.5 | Well, they're not, we're not hearing about it yet because right now they keep lowering or keeping |
0:36.5 | rates high, right? But now with this new jobs report, |
0:39.3 | there's going to be pressure to lower rates. And if you lower rates, what do you do? You up inflation. |
0:45.4 | And we're not, I don't think we've even hit their 2% target, but we're close right now. |
0:49.9 | So they're going to then need to move their target to 3%. |
0:54.9 | So there's kind of like, what does that mean, right? |
0:57.7 | If the Fed is moving its inflation target, which it hasn't done since the 70s, right? |
1:02.5 | I'm not exactly sure when, but, you know, they did talk about this. |
1:05.7 | Like, you know, a couple years ago, they talked about maybe moving the inflation target. |
1:10.3 | If you guys remember in 2022, inflation went up to 9.1, right? |
1:15.1 | Like, remember? |
1:15.8 | And then the Fed kind of reacted late. |
1:18.0 | And they started doing these rate cuts. |
1:20.4 | As you guys know where that went. |
1:21.6 | So we went from really, really, really low interest rates to really high interest |
... |
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