The immediate fallout from any sign of diminishing U.S. inflation would be further to boost expectations that the Fed will delay any slowing of its quantitative easing (QE) asset-buying program.
Yellen has already fed this expectation at her confirmation hearing. Falling inflation would mean the QE money-printing might even be useful to ward off any deflation threat, on top of pumping up the economy.
This, in turn, will provide some succor to emerging markets - particularly those with high current account deficits - that have seen their currencies clobbered as the prospect of U.S. stimulus ending has pulled cash out of their economies.
Source:http://www.ology.com/post/335546/corliss-online-group-financial-magazine-evaporating-inflation