For retirees largely in fixed income, deflation is good. For the rest, the economic impact of deflation is very bad. 0-2% inflation is ideal overall. Personally, I see the fed cutting rates next year but continuing QT unless deflation risk really accelerates.
“For retirees largely in fixed income, deflation is good.”
Yup—you got it.
Let us deflate our way back to 2020—then we can talk....