The Fed has focused its attention on inflation expectations, which for both consumers and businesses, have come down to about 3%.

The market will have already rallied by the time inflation is tamed because of the market’s forward-looking nature. On the minds of investors will be a possible recession or the next big thing. There’s always something on the horizon.

During the Great Depression, deflation was one of the biggest issues. At the time, many thought removing the gold standard would be inflationary. Bank runs were common and hoarding gold became outlawed. Money itself became valuable, not goods and services. That’s one of the dangers of deflation.