Will U.S. Inflation Drop Below 2% Again? Don’t Hold Your Breath — But Don’t Panic Either.

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As we are in mid-2025 and inflation has cooled off a bit (we’re talking around 2-3%), one question dominates kitchen tables alike: Will U.S. inflation ever return to the Federal Reserve’s cherished target of below 2%?

It’s a fair question. And a complicated one. Having spent 20 years watching economic cycles from both Wall Street and Main Street perspectives, I’m here to untangle this web of monetary forces and offer my take on America’s economic future.

What exactly is inflation, and why does 2% matter?

Before diving into predictions, let’s clarify what we’re discussing. Inflation isn’t just rising prices. It is the rate

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