Recent declines in energy prices will likely push headline inflation further below the Federal Open Market Committee’s (FOMC) longer-run goal of 2 percent for a time, but aside from those transitory effects, we expect that inflation will run close to 2 percent.
Friends, parents, teachers and so many other agents sell to us their version of the truth. The one we accept, consciously or unconsciously, forms our belief as to what is possible and what is not. The problem is that many people end up accepting a ‘truth’ that limits rather than open up the frontiers of possibilities for them.