Two years after the Fed battled inflation, bond investors see a new risk: Consumer price growth slows too much。A day before the U.S. August inflation report, a gauge of consumer price index growth expectations showed inflation was in danger of falling below the Fed's target.。The Fed has long argued that persistently low inflation is as harmful to the economy as high prices because it will force policymakers to keep borrowing costs too low for too long, thereby reducing the Fed's ability to withstand a recession.。
Two years after the Fed battled inflation, bond investors see a new risk: Consumer price growth slows too much。A day before the U.S. August inflation report, a gauge of consumer price index growth expectations showed inflation was in danger of falling below the Fed's target.。The Fed has long argued that persistently low inflation is as harmful to the economy as high prices because it will force policymakers to keep borrowing costs too low for too long, thereby reducing the Fed's ability to withstand a recession.。
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