{video} The 2% inflation target is key to the Federal Reserve’s vision for stable prices in the U.S. economy, according to the Federal Reserve Bank of St. Louis. Canada, Australia, Japan and Israel are among the many economies that include 2% in their inflation rate targets, according to the International Monetary Fund. But, “the 2% inflation target, it’s relatively arbitrary,” Josh Bivens, director of research at the Economic Policy Institute, told CNBC. Then, where exactly did this 2% inflation rate dream originate? “You would think that ... maybe somewhere in the Bible, God says he wants 2% inflation,” Laurence ... (full story)