What does Psalm 2:2 mean?

This clearly identifies the aggressors behind the evil plot mentioned before (Psalm 2:1), as well as the target of their aggression. The kings and rulers of the nations are the aggressors. The word "set" here implies deliberate preparation and arrangement. Translations such as the NASB render this as "take their stand," suggesting the aggressors' hostile intent. They gather their armies in military formation and brainstorm how to overthrow the Lord and His Anointed.

The English word "Anointed" here comes from the Hebrew term mashiyach. This is the origin of the word "Messiah." In Greek, the same concept is expressed with the title Christos, from which comes the English title "Christ." This points to Jesus, Israel's Messiah (Acts 2:36). In Old Testament times three significant roles were inaugurated by the anointing with oil. They were the roles of prophet, priest, and king. The prophet delivered the Lord's messages to the people; the priest represented the people before the Lord; the king ruled the people on behalf of the Lord.

Jesus, the promised Messiah, is all three: prophet, priest, and king. He came to earth as the Word and declared God's message (John 1:14, 18). He is the believers' High Priest, interceding for us (Hebrews 4:14–16). And someday He will rule the earth as King of kings and Lord of lords (Revelation 17:14; 19:16).