Inflation Will Remain Subdued
After the oil prices will return to normal, everyone will fear hyperinflation because there is indeed a risk for it. Thus, people will act in consequence and manage their finances much more differently – and that will actually lead to hyperinflation even though it wouldn’t have happened otherwise.
The job of the Feredal Reserve is to keep citizens calm by assuring them that everything is going to be okay. If people start acting in a certain way, the economy really changes according to their beliefs.
How it affects you: Generally, the costs of living will remain about the same, although food prices will rise for a while. Even so, you don’t have to panic anymore because inflation won’t affect your retirement savings as drastically as it could have in the past.
