![Deflation and The U.S. Fiscal Crisis Dynamics on the Treasury Market](/content/images/size/w262h147/2024/02/capitol-building-sea-surge-midjourney.png)
Deflation and The U.S. Fiscal Crisis Dynamics on the Treasury Market
In the short term, the U.S. economy could experience a brief period of deflation, which might stem from a severe external shock. However, this scenario is considered unlikely due to the existing fiscal framework and the U.S. status as a reserve currency issuer.