2010/2011 Inflation Prediction Quotes

Feb 2011 The U.S. economy has tremendous potential to grow without fueling inflation, the White House said Wednesday in a generally upbeat report to Congress even as officials said they were monitoring the effect of turmoil in the Middle East on oil prices, which could drive up consumer costs. May 26th 2010 Paul Krugman -Yet both logic and experience show that when youre in a liquidity trap, big rises in the monetary base arent inflationary in fact, they can be virtually irrelevant. Actually, this has a moral beyond not to worry about inflation. David Einhorn, Greenlight May 2010- At the investor conference he said that at Greenlight, We tend to think of gold as a currency and that I think theres going to be a lot of inflation. May 6th 2010 Jeffrey Lacker, the president of the Richmond Federal Reserve Bank. My worry is that we will let the obvious slack in the economy lull us into a false sense of security regarding inflation, which could allow inflation pressures to build before we raise rates April 20th 2010 (England) - Consumer price inflation is likely to hover around 3.0-3.5 percent in the near term due to unfavorable base effects resulting from the marked retreat in inflation a year ago when the recession was at its deepest. However, consumer price inflation will hopefully be firmly on a downward path by the end of the second quarter,Archer said. April 16th 2010 Unemployment should remain stubbornly high for the next few years, or about 9.25 percent by years end and 8 percent at the end of 2011, she said. Inflation rates should fall to about 1 percent this year and next, below the 2 percent level that most policy makers regard as consistent with price stability, Yellen said. April 15th 2010 The economic recovery is boosting rates, and that is a positive, says Brad Sorensen, director of market and sector analysis at Charles Schwab. We see no evidence that there are inflationary pushes other than the economy improving. Thats not a bad thing for stocks or companies or corporate profits. April 14th 2010 Mark Zandi, chief economist at Moodys Economy.com. It is pretty clear that inflation is low and slowing. April 9 2010 Daniel Tarullo The relatively modest pace of recovery, the continued high rate of unemployment, subdued inflation trends, and well-anchored inflation expectations together suggest that the need for highly accommodative monetary policies will not diminish soon, Daniel

Tarullo, President Barack Obamas lone appointee to the Feds board of governors, said in a speech in New Y April 7 2010 Bernanke Nearly all members judged that it was appropriate to reiterate the expectation that economic conditions including low levels of resource utilization, subdued inflation trends, and stable inflation expectations were likely to warrant exceptionally low levels of the federal funds rate for an extended period, but one member believed that communicating such an expectation would create conditions that could lead to financial imbalances, the minutes said. April 6, 2010 Minneapolis Fed President Narayana Kocherlakota So, to summarize my economic forecast, I do think that the economy is on the mend and should continue to recover over the next two yearsin terms of both GDP and unemploymentbut at slower rates than we would like. The outlook for inflation is basically promising, as long as the Federal Reserve and Congress work together appropriately. And as for housing: Housing will recover eventually. In the meantime, the general economy has already begun the recovery process. April 5th 2010 Liz Ann Sonders, the Chief Investment Strategy for Charles Schwab, says inflation concerns are overblown. April 1st 2010 NY Fed President William Dudley on Inflation Inflation will probably stay very low as slack in the economy diminishes slowly, in an economy thats qualitatively different from previous post-World War II business cycles, Dudley said today in a speech in Lexington, Virginia. The recovery is likely to be quite muted compared with past recoveries. March 30th 2010 Chicago Fed President Evans I discount rising inflationary pressures, I dont think those are evident, he said. Weve said rates will remain low for an extended period of time. I have said many times that to me that suggests 3-4 meetings where we will continue to assess the current situation, he repeated. March 25 2010 - Federal Reserve Vice Chairman Kohn I am confident the Federal Reserve can and will tighten policy well in advance of any threat to price stability, and successful execution of this exit will demonstrate that these emergency steps need not lead to higher inflation, Kohn said yesterday in a speech in Davidson, North Carolina.