Comments by "DrScopeify" (@drscopeify) on "Inflation rose at a 4% annual rate in May, the lowest in 2 years" video.

@SA-gf3th Inflation is always needed otherwise we risk a deflation cycle like Japan where people see prices falling every day so companies cut manpower and the public stops buying goods as prices keep falling even faster, and this continue for many years and that can get ugly fast. Japan was stuck in this for 20 years real crazy and their economy got stuck. in 1995 the Japan GDP was 5.56 trillion dollars and today in 2023 it is 4.9 trillion dollars so around the same size 20 years later. The USA GDP in 1995 was 7.6 trillion and today it is 25 trillion so over 3x larger in that time period.
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@LiterallyAnythingYouWant The FED is aiming for a 2 year period of rate cuts so they need some inflation left to cushion the process, if they run out of inflation too quickly they will have to cut rates much more aggresively than 2 years which is dangerous that means blind and fast cuts which wont give data enough time to prevent a mistake like inflation shooting up again out of the blue which can happen when chasing tooo fast behind falling inflation rates. The faster your steer a big ship the most crap goes flying and people get injured.
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