Aug.26 — Federal Reserve Bank of Kansas City President Esther George says the central bank’s 2% inflation goal must reflect “what’s happening in the real economy.” She speaks with Bloomberg’s Mike McKee on “Bloomberg Surveillance.”
In This Story: Inflation
In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.