The phrase
"inflationary forces" refers to various factors or conditions in an economy that contribute to an increase in the overall price level of goods and services. These forces can include rising production costs, an increase in consumer spending, higher demand for goods and services, or a decrease in the value of a currency. All of these factors can lead to a general increase in prices over time, which is known as inflation.
Full definition
This week delivered two major blows to the already struggling Greenback, as the dovish Fed - statement was followed by a prelim GDP report that showed very
weak inflationary forces.
Similarly, the gold and silver markets are often viewed as an early warning
of inflationary forces, excessive «money printing» and political and financial mismanagement.
The positives are most clearly evident in the United States, where the Asian crisis, by contributing to a stronger US dollar and falling world commodity prices, has helped to
cap inflationary forces.
Afterward, the Fed would likely need to ease as the cyclical bounce fades and structural dis -
inflationary forces kick back in.
Lynn Reaser, chief economist for the Investment Strategies Group at Bank of America, expected the pause in rate hikes «because of the fact that interest rates are approaching the higher end of what may be called a normal range, and in view of the slowing in the economy, which is expected to ultimately
dampen inflationary forces.»