Quote from: Husires on January 06, 2023, 12:41:56 PM

The Federal Reserve is now watching the markets closely, and the continuity of withdrawing liquidity for a long period will accelerate avoiding deflation. It is easy to pump liquidity, but it will make it difficult to reach “healthy” inflation during the current fiscal year.

I am afraid of what is happening in China. The last thing we are waiting to see now is the return of COVID19 with a good mutation, which means more health restrictions.
And the war that is taking place in Ukraine and the lack of control over it.
The energy crisis and its problems, especially with the European economy.

So we have enough problems to fear deflation

It may not happen that we will return to covid19 again, because we have seen its effects and effects all over the world and that is not good. After all, we haven't fully recovered after several years of pandemic.
Then I don't think the FED will let that happen, as long as they find a solution, they are for sure already doing it and preparing to not lead to such a situation.