Among the comments he heard this week at meetings of the National Association of Business Economics in Washington, D.C., were:
- “Clearly there is virtually no threat of inflation in the next two years.”
- “There’s virtually no chance of the Fed increasing interest rates (maybe a symbolic small move aside).”
- “The last recession, the Fed waited until unemployment was 5.5 percent before tightening.”
- "We won't get to that level for several years.”
- “The threat is for deflation across the globe, with the exception of China.”
- “China’s money supply is up 30 percent from last year. Our M3 (the Fed’s measure of the money supply) is virtually unchanged from a year ago, and available credit is less than last year.”
For more on Dotzour's findings, read the Center's news release.