Fed’s tough task: History shows inflation takes average of 10 years to return to 2%

MarketWatch/Vivien Lou Chen/9-21-2022

grpahic image of a red inflation sign with arrow higher and rising percentages

“History shows that inflation takes an average of 10 years to return to 2% once it breaks above 5%, according to Thanos Vamvakidis, a strategist for BofA Securities in the U.K.”

USAGOLD note: One would think too, that the greater the gap between the current headline inflation rate and the 2% target, the greater the difficulty returning to that target number. At the moment, that gap is 6.3% but the future number is dependent on the future price of raw materials and finished goods at a time when the supply chain is breaking down.

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