I defer to you, but I’d appreciate you sharing with me a time when negative rates were a Fed goal. I know that the Bernanke Fed adopted 2% CPI growth as its target in 2012.
“We often see negative rates as an encouraging sign when coming out of an inflationary period.”
When?
I understand that a recessionary capitulation can mark the beginning of a recovery, but the only time in living memory that CPI declined for a calendar year was in 2009 following the financial collapse, and even then it dropped by only .04%.
In 1982, with the Volker-engineered collapse of inflation the rate still remained positive, although by only .31%. The next year saw a rebound to 3.2%.
From Basic Info, https://ycharts.com/indicators/us_m2_money_supply