That's obviously a statement you don't hear many people say, but if we review the history of the cabal that decides if they should implement QE or QT, the cabal has the susceptibility to over-adjust in one side causing inflation, and probably deflation after over-tightening. When one act causes an outcome, they over-adjust to stop the outcome, which causes the opposite outcome.
I'm not an economist, but if deflation happens in 2023 that causes further recession, what would the Federal Reserve do? MAXIMUM ORDERS OF BRRR-MONEY PRINTING.
Prepare to experience a big surge for Bitcoin like it was 2015 - 2017
I'm not an economist, but if deflation happens in 2023 that causes further recession, what would the Federal Reserve do? MAXIMUM ORDERS OF BRRR-MONEY PRINTING.
Prepare to experience a big surge for Bitcoin like it was 2015 - 2017
I think FED will continue increasing interest rates to stabilize prices of commodities and energy, however, it won't lead to Deflation in 2023. Deflation, or sustained decline in prices is never good good for the economy, as it can result in decreased spending & investment, which can lead to decline in economic growth and causes unemployment. If deflation were to occur, FED can use monetary policy tools, such as quantitative easing to stimulate economy.
+1
In best case scenario we could see a glimpse of deflation at the end of 2023.
It is difficult to predict anything with certainty , however It is possible that deflation may occur at the end of 2023 as inflation is cooling since June-22, but it will depend on variety of economic factors, such as inflation, interest rates and GDP. I think FED may reverse its policy of money tightening , if there is a concern of deflation in economy.