Within the Fed, Worries of Deflation

WASHINGTON — A subtle but significant shift appears to be occurring within the Federal Reserve over the course of monetary policy as the economic recovery is weakening.

On Thursday, James Bullard, president of the Federal Reserve Bank of St. Louis, warned that the Fed’s policies were putting the economy at risk of becoming “enmeshed in a Japanese-style deflationary outcome within the next several years.”

Source : www.nytimes.com...

After fear of hyperinflation, fear of deflation... what is wrong with this economy?


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