John Snow let's us in on more of his 'thinking'. We already know he is maintaining the 'strong dollar policy', now he tells us there is 'no risk' of deflation in the US. I guess this is what he is paid to say, but I do wish they could find a more honest and open way of conducting policy.
Treasury Secretary John W. Snow said today that he saw no significant threat of deflation in the United States, three days after the Federal Reserve warned of a possible fall in inflation. "I don't think the U.S. has any risk of being in any significant deflationary period," Mr. Snow told reporters. Any comparison with Japan, where prices have not risen since 1998, "would be inappropriate," he said. Fed officials, including Alan Greenspan, have said that deflation is a remote possibility. Mr. Snow later told business leaders in Memphis that deflation was a "monetary phenomenon" and thus something for the Fed to address. "We have very competent leaders at the Federal Reserve, and I'm sure they have the tools to deal with it," he said.
Source: New York Times
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