Ask Beth: Why is the Fed’s inflation objective 2 percent?
Main theme
The Federal Reserve’s inflation objective is 2 percent. Two percent allows for economic growth while balancing the Fed’s dual mandate of maximum employment and price stability. It also creates a guide for individuals and businesses, so they can make more informed economic decisions.
Video summary
Cleveland Fed president, Beth Hammack, explains why the Federal Reserve’s inflation goal is 2 percent. This is one video from her series titled “Ask Beth.”
Other videos in the series
Ask Beth: How does the Cleveland Fed collect data?
Cleveland Fed president and CEO Beth Hammack answers the question: “How does the Cleveland Fed collect data?” in her video shorts series, “Ask Beth.”
Ask Beth: Is the Federal Reserve part of the government?
Cleveland Fed president and CEO Beth Hammack answers the question: “Is the Federal Reserve part of government?” in her video shorts series, “Ask Beth.”
Ask Beth: What is the Supervision Function of the Federal Reserve?
Cleveland Fed president and CEO Beth Hammack explains the supervision function of the Federal Reserve in her video shorts series, “Ask Beth.”
Ask Beth: What is the Federal Reserve’s role in the Payment System?
Cleveland Fed president and CEO Beth Hammack explains the Federal Reserve’s role in the payment system in her video shorts series, “Ask Beth.”
Ask Beth: What is Financial Stability?
Cleveland Fed president and CEO Beth Hammack explains financial stability in her video shorts series, “Ask Beth.”
Ask Beth: What is the Consumer Protection and Community Development function of the Federal Reserve?
Cleveland Fed president and CEO Beth Hammack explains one of Fed’s key functions, community development and consumer protection, in her video shorts series, “Ask Beth.”
Ask Beth: What is the Dual Mandate?
Cleveland Fed president and CEO Beth Hammack breaks down the Federal Reserve’s dual mandate in her video shorts series, “Ask Beth.”
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Related resources
President and CEO
Learn about the work of Beth M. Hammack, president and CEO of the Federal Reserve Bank of Cleveland.
About Us
The Federal Reserve Bank of Cleveland (commonly known as the Cleveland Fed) is part of the Federal Reserve System, the central bank of the United States.