Hi Gatekeeper,@ansy1968
Yep. As Keynes said, a vicious spiral. But fortunately Keynes also said and can be observed empirically that prices are sticky downwards. It is very hard to see price deflation (It is not impossible, but hard. Firms tends to cut production to keep prices at the same level). Which is why even in a recession, there's still inflation thought small.
And worse of all, it's the stagflation, the kind we, the older ones experienced in the 1970s. Where the economy is stagnating, and with this the price level should drop to adjust itself according to classical economists. But it never did, so we got a contraction in the economy couple with hyper inflation. Oh happy times! Lol
They may remove the tariff in Chinese goods to lower the inflation pressure. But It will be a tough call, usually the US should be in a stagflation stage right now. They are fortunate that the Dollar is an international reserve currency, I think they may not escape this time around with their over printing, negative reserve rate to undervalue the dollar and a possible challenger in Chinese Yuan.