Inflation had almost stopped for several years. We’re still below the fed mandate. Inflation encourages people to work as opposed to living off assets they already own.
The Fed doesn't have a specific mandate for inflation levels, so it is impossible to be below it. The Fed mandate is to “promote effectively the goals of maximum employment, stable prices, and moderate long term interest rates”.
Inflation or no, the banks are going to go bust without infusions of cash as retail folds up and securitized leases and leveraged commercial developers implode.
I live in upstate NY, not exactly a boomtown... the economy is stabilized by government workers whose wage growth is 0-2% annually. The apartment that I rented in a nice suburban development for $550 in 2000 is $1150 in 2020 — well ahead of inflation. I see that pattern in many categories.
1. of which a slight majority are private investors https://fiscal.treasury.gov/reports-statements/treasury-bull...
Inflation mostly encourages lower/middle class people to consume every dollar instead of saving for the future.
https://www.multpl.com/s-p-500-historical-prices/table/by-ye...
Long story short by making inflation appear lower then it is, the tax brackets have stayed lower then they otherwise would, costing tax payers an extra 130 billion over 10 years
The Fed hasn’t been around that long, and isn’t even involved in inflation numbers, which come from the Bureau of Economic Analysis in the Department of Commerce.