The chances of the US economy slipping into deflation are rising even though the Federal Reserve (Fed) is injecting an unprecedented amount of liquidity into the system to buttress growth and inflation. The Fed’s deflation probability indicator, as calculated by the St. Louis Fed, rose to 76.3% last week, the highest level since 2008. Deflation refers to a sustained decline in the general price level in the economy. The uptick in the deflation probability indicates the Fed is unlikely to achieve its 2% inflation target any time soon. However, rally in gold, a safe haven, and an inflation hedge, suggests otherwise. The yellow metal jumped to an eight-year high of $1,779 on Wednesday and was last seen trading near $1,768 per ounce, representing a 16.5% gain on a year-to-date basis. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Australian PM Morrison: Reopening of state borders will support jobs growth FX Street 2 years The chances of the US economy slipping into deflation are rising even though the Federal Reserve (Fed) is injecting an unprecedented amount of liquidity into the system to buttress growth and inflation. The Fed's deflation probability indicator, as calculated by the St. Louis Fed, rose to 76.3% last week, the highest level since 2008. Deflation refers to a sustained decline in the general price level in the economy. The uptick in the deflation probability indicates the Fed is unlikely to achieve its 2% inflation target any time soon. However, rally in gold, a safe haven, and an inflation hedge, suggests… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
