this post was submitted on 24 Dec 2022
6 points (100.0% liked)
United States | News & Politics
308 readers
6 users here now
founded 4 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Many of the factors driving inflation were transitory instead of fundamental. As these factors resolve themselves, inflation has been going down and is likely already nearing target rates. This could mean the Fed decides not to keep raising interests rates and prepares for a soft landing for the economy. Unfortunately, the greater public's understanding of the current situation is lagging the actual situation, which can cause political pressures to make unwise choices.
Inflation was brought by creating deflation and recession though. US just traded one set of problems for another.
Can you say more what you mean by the creation of deflation, please?
Deflation basically means overproduction when companies produce more goods than the market can absorb. This is a pretty good article on what's happening.
Thank you, comrade.
👍