n its post-meeting statement, the Fed removed a passage it had used after its three previous meetings to warn of the risk of deflation, meaning a broad-based decline in prices. Deflation is closely linked with another “D” word: depression.
The old statement wording read, “The Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.”
That was code for deflation.
Fed Tries To Turn Conversation Away from Deflation Risk – Money & Co.
