Question

Will the US enter a liquidity trap next year? Why?

Answer 1

NO, the US will not enter a liquidity trap next year because the liquidity trap doesn't exists, this was proved last time during the sub prime and financial cirsis in year 2008.

With increased money supply and close to zero interest rate, the demand in the market increased and that lead to an increase in the interest rate and inflation, the Fed larter on rollback the increase in the money supply. So, US will not enter a liquidity trap next year.