Record price gains across large swaths of the economy have left many investors bracing for a period of sustained inflation, causing them to overlook the growing threat of deflation, according to some economists.

Deflation, in which prices retreat, is viewed as a negative sign for the U.S. economy.

While Federal Reserve Chairman Jerome Powell has insisted that the recent surge in inflation is “transitory,” pointing to the more than 50% decline in the cost of lumber as evidence that prices will cool as supply chain issues caused by COVID-19 are resolved, he has not yet hinted that deflation could be emerging.

The Fed in August tweaked its policy, saying it would allow inflation to run “moderately” above 2% “for some time” in order to help the central bank meet its goal of full employment.... Read More: FOX News