The U.S. Federal Reserve has made one thing very clear: It views deflation as public enemy No. 1, and it will do everything in its power to keep that ruinous downward spiral in prices from taking hold.
But is the U.S. central bank focused on the wrong threat? And if that's the case, are U.S. policymakers setting the stage for a consumer-crippling inflation spike?
While the Fed has announced more quantitative easing to pump more money into the U.S. economy - hoping that would encourage lending and spending - a cadre of cash-strapped consumers is worried the stimulus measures will actually ignite long-term inflation.
There is a precedent: The current policy is similar to one taken in 2003 - 2004, when the Fed kept rates near a record low and inflation rose faster than initially predicted.