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Subject:  Re: Worst case for bond funds Date:  5/23/2013  7:49 AM
Author:  StuyvesantGrad70 Number:  34965 of 35576

So can deflation occur again???

The Fed is scared about deflation and is doing all it can to prevent it. A few comments yesterday from James Bullard, president of the Federal Reserve Bank of St. Louis:

Inflation in the U.S. needs to climb back toward the 2% target before the Federal Reserve should consider slowing the pace of its asset purchases. He is "nervous" about the fact annual inflation in the U.S. has been trending down. Annual inflation slowed to 1.