Inflation Target of 2% Eludes US Economy

The Federal Reserve's efforts to bring down inflation through rate hikes may be in vain. According to the latest inflation report, the US economy is unlikely to return to a 2% inflation rate anytime soon. Fed Chair Kevin Warsh has promised to reach this target, but the current rate of inflation is higher than that.

The reasons for this are complex and multifaceted. Government policies on trade, immigration, and energy may be contributing factors, but as far as consumers and the Federal Reserve's credibility are concerned, these explanations don't matter. The US economy is built around a 2% inflation rate, and it's clear that this won't be easily achieved.