Why Two Percent Inflation Target Is Wrong for 2026

Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People · Jul 9, 2026 · 8m · transcript

Lucas and Luna unpack why the Fed's two percent inflation target may no longer fit the economy of 2026. With core PCE at 2.4% and the labor force participation rate at a 50-year low, they question whether the target was designed for a bygone era. They explore the history of the target, how it became dogma, and what a higher target—say three or four percent—could mean for workers, debt, and the housing market. They also look at how the ECB's Christine Lagarde is hinting at an early exit while France's political turmoil brews, and what that says about global central bank…