In some ways, falling prices would actually be bad news for the economy.
Slowing inflation isn't as dangerous as prices dropping for a long period of time. But it's important to keep disinflation in check.
Prices of many goods are dropping as demand slows and people stay at home more. But does this mean deflation is here to stay?
Federal Reserve Chairman Jerome Powell spoke Wednesday about low inflation, which he called “one of the major challenges of our time.” Historically, inflation concerns have more often been around too-high inflation, such as the U.S. experienced in the 1970s and early 1980s. But too little inflation can also be problematic, especially for the Federal Reserve’s ability […]
Falling prices can be great for the economy ... until they turn into deflation.
The Fed is not worried about inflation right now. But should it also worry about the opposite? Persistently falling prices, or deflation, can also wreck an economy.
Chrysler and Ford are reporting strong sales numbers, particularly truck sales, for June. Though manufacturing data across several other industries is down.