Forget inflation – deflation could rear its ugly head soon

Crossmark Global Investments chief investment officer Bob Doll shares his investing advice and his take on whether inflation is transitory. 

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…

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