Which of the following accurately describes the Fed's inflation target?
A) It is implicit rather than explicit.
B) It seeks to maintain an average inflation rate of 2% per year.
C) It seeks to keep inflation at 2% all the time.
D) Its goal is to achieve zero inflation.

Question

Quizplus · Accepted Answer

The Fed's inflation target is to maintain an average inflation rate of 2% per year. This target is explicitly stated by the Fed and serves as a guide for its monetary policy decisions.

Which of the Following Accurately Describes the Fed's Inflation Target