The Federal Reserve is facing challenges in lowering inflation to 2%, with projections suggesting it will take until 2026.

Some suggest raising the inflation target instead, as it would require a significant economic impact and potentially a recession.

The 2% target, which has been part of the Fed’s price stability mandate for over a decade, is considered the best option for consumers and businesses without causing deflation.

However, the goal is considered long-term and may not be achievable soon due to supply-related shocks and labor strikes.