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Let's say that CPI drops even quicker than it went up due to a combo of rate hikes working, demand destruction, and supply chains clearing up. What would the Fe

by jdhn 4y ago

Let's say that CPI drops even quicker than it went up due to a combo of rate hikes working, demand destruction, and supply chains clearing up. What would the Fed do in that case?

Enginerrrd 4y ago
Potentially end up with significant asset deflation. This is actually a big concern of mine. We were in a definite asset bubble to begin with, so some correction was expected. But I'm concerned the fed's levers against inflation are slow ones and that we could see a real deflationary economy coming up here. The economy has been fast to fall and slow to recover, so the fed is, IMO, in danger of overshooting their soft landing significantly.
- bamboozled 4y ago
  Do assets here include property ?