Is Deflation A Risk ?
Thus far, the Fed's massive monetary base expansion with a balance sheet exceeding $4 trillion
 |
| Federal Reserve Balance Sheet |
and largely sits as excess reserves at the Fed, and as such monetary velocity continues to make 50-year lows. Thus, there has been very little real goods inflation, traditionally driven by a demand-pull dynamic.
 |
| Excess Reserves |
 |
| Monetary Velocity |
