What great wealth transfer?

**SPEAKER_1** (0:00)
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**Kimberly Adams** (0:31)
We're getting lots of economic data this week from the government and companies just in time for a Fed meeting.
From Marketplace in Washington, I'm Kimberly Adams. The Federal Reserve Open Market Committee is convening today and tomorrow. This marks the second meeting for Fed Chairman Kevin Warsh, and all eyes are on the decision from the Federal Reserve officials to hold or hike interest rates. Joining us to discuss is David Kelly, Chief Global Strategist at JP Morgan Asset Management. Good morning.

**David Kelly** (1:01)
Good morning.

**Kimberly Adams** (1:02)
How is the economic data we've received since the last FOMC meeting in mid-June playing into the Fed's decision-making process this week?

**David Kelly** (1:11)
Well, I think it is important. We've seen a slowdown in job growth, so we saw slower job growth in June than we'd seen in May, and that's one thing.
And then we also saw inflation come down a little faster in the June reading than they had thought or we had thought. So, overall, the numbers show a little less inflation pressure, a little less economic growth than the Fed was seeing in the middle of June, and so that should make them a little less likely to raise interest rates.

**Kimberly Adams** (1:39)
What is so special about the Fed's 2% target when it comes to inflation?

**David Kelly** (1:44)
Well, it's just historically what they've targeted. We know that 0% is wrong because the economy doesn't work well if prices aren't rising, at least a little.
The economy does better when there's a little inflation. But obviously, if you have higher inflation, 4%, 5%, then it's very hard to plan, and it also causes monetary policy to not be very effective. So what we want is a low and stable but positive inflation rate. The Federal Reserve has traditionally called that 2%, and honestly, I think 2% is about right.

**Kimberly Adams** (2:17)
David Kelly is Chief Global Strategist at JP Morgan Asset Management. Thank you so much.

**David Kelly** (2:23)
Anytime.

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**Kimberly Adams** (4:02)
The number of Americans 65 and older is expected to nearly double by 2060 And a new report from the Washington Post finds that at the same time, many aging Americans are draining the inheritances they had hoped to leave behind.
Joining me to talk about this is Federica Coco. She's a data reporter on the Business Desk at the Washington Post. Federica, welcome.

**Federica Coco** (4:26)
Hi, Kimberly. Thanks for having me.

**Kimberly Adams** (4:28)
I feel like your article's finding might surprise a lot of folks given how much we've heard about this massive wealth transfer that's supposed to be coming from baby boomers to younger generations. So what made you and your team dig into this?

**Federica Coco** (4:41)
Well, I remember reading an article about this great wealth transfer. At the same time, The Washington Post was working on an investigation on memory care.
That's when I found out that in some assisted living facilities, people were paying between $6,000 to $12,000 a month. It made me skeptical about whether this great wealth transfer was going to happen exactly as described.