US: Significant downward price pressure – Nordea

Analysts at Nordea see deflation risks as a much bigger concern for the Fed than hyperinflation.

Key quotes

“The vast majority of our leading indicators point at a significant downward price pressure in the next few quarters – a pressure, which monetary policy may not be able to alleviate in the short-run.”

“Whereas the last decade was one of too-low inflation, the 2020s may thus - in a worst-case scenario - end up being the decade of no inflation.”