Monday, January 25, 2010

Inflation is Dead!

The St Louis Fed has a non-scientific survey on its home page. I answered the survey question, choosing no inflation risk, and then the results were shown. Here is the question and the response summary as of now...

Which do you think is the top risk for reigniting inflation over the next several years?

   64% There is no inflation risk—it's dead and buried.

   13% The federal budget deficit continues to mushroom.

   11% The Fed waits too long to return the monetary supply to a pre-crisis level.

    7% There turns out to be less slack (smaller output gap) in the economy than many experts believe.

    5% Commodity prices balloon again as investors tire of low-yielding Treasury securities and shift their money into higher-yielding commodity contracts and other assets.

Number of Respondents: 754

Note to Curious George...I did not vote more than once. LOL