Despite the decline in headline producer price pressures, the risks of deflation have clearly vanished and signs of inflationary pressures have emerged. With the Fed holding real rates below zero, we expect producer prices to continue their upward trend in the months ahead.
More Quotes from Brian Wesbury:
The Fed ignored falling commodity prices and a rising dollar in 1999 and 2000, tightening monetary policy anyway. The result was a recession and deflation. This time the Fed is making the same mistake, but in the opposite direction. The result will be rising inflationary pressures and bond yields.Brian Wesbury
All in all, the economy is not weak enough to warrant another rate cut. However, the Fed will give us one anyway. As always, the end result of excessive ease by the Fed will be higher rates in the years ahead.
Brian Wesbury
Those who fear deflation thought they were watching a horror flick this morning when the PPI was reported as falling 1.9 percent in April,
Brian Wesbury
It will lead to an increase in stock market value, which will help bring initial public offerings back into market, along with merger and acquisition activity, which has been sorely missed in past two or three years. That added financial market activity comes along with a lot of real economic activity as well.
Brian Wesbury
I think rules are made to be broken and history isn't always a perfect guide. Today the stock market is very undervalued. As I look into the future, the gains of the past few weeks are a precursor to what is going to happen in the future.
Brian Wesbury
Real GDP in the third quarter and into the fourth will clear 4 percent, ... The economy has recovered after the war very strongly.
Brian Wesbury
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Based on Topics: Danger & Risk QuotesBased on Keywords: deflation, inflationary
So that a famine price is vague, and the plan subject to all the inconvenience now experienced.
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