Deflation Debate Heats Up in Bond Market Ahead of Fed Meeting

(Bloomberg) — Bond investors are starting to debate whether the U.S. is heading into a deflationary spiral, even after trillions of dollars of stimulus to offset the pandemic-driven hit to growth.This year’s collapse in oil prices and the drumbeat of staggeringly weak economic data are putting the question front and center as the Federal Reserve meets this week. The central bank is expected to sit tight for now and assess the programs it’s rolled out in the past month to calm markets, while reiterating a commitment to do more as needed.But with market-based gauges showing investors see inflation stuck at …read more

Source:: Yahoo Finance

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