While the Fed did not mention the word “deflation”, and it clearly does not regard that as the most likely outcome,  2  BIS Review 26/2003  markets interpreted the Fed as saying that deflation was now at least a possibility that had to be included into the range of conceivable outcomes. US bond yields soon dropped to 45-year lows.
Guy Quaden: Review of significant events in 2005 Introductory speech by Mr Guy Quaden, Governor of the National Bank of Belgium, at the Ordinary General Meeting of the National Bank of Belgium, Brussels, 27 March 2006.