We Didn’t Really Mean Deflation

From a story in today’s Wall Street Journal on the Fed’s overstating deflation fears earlier this year: “The catalyst for the debate was Fed officials’ widespread discussion during the spring of the risks of deflation, or generally falling prices, and what ‘unconventional’ measures it could take to combat it. The discussions prompted investors to drive bond yields down sharply and then back up again when they learned the Fed wasn’t that worried about deflation.”