Junk bonds, for instance, are producing a less than pulse - quickening yield of 6 % which, adjusted for defaults (likely to
explode during the next recession), isn't worth the risk — save in a few special situations.
Accordingly, policy should be set with a view to modestly raise target inflation, perhaps to 2.3 or even 2.5 percent inflation, during a boom with the expectation that inflation will
decline during the next recession.
«Some» policymakers also made a case that if economic conditions deteriorate (or
during the next recession), the Federal Reserve can simply restart the reinvestment program even after it has already been stopped.
I see prices going down 10 - 15 %, depending on the hood,
during the next recession, but I mean people love it here.