Increasingly, the Fed will recognize that prices are set outside of the U.S.. |
It is a foregone conclusion that there is no threat of inflation ... the question is not when the Fed will ease, but how much, and how frequently. |
It was a closer call than some people will say. But the reality is, there are signs the economy is slowing. |
The Fed is done for the year. |
We haven't had this kind of an environment since the Truman years. |
We still have an environment where the economy is moderating. The story on inflation is that it remains subdued. |
What we are experiencing now is the best of all possible worlds, but it is an element of concern for the Federal Reserve that we don't spill over from inflation, moderate as it is, to outright deflation, which could be a very dangerous development. |