April 15, 2010

In the latest survey, economists were evenly divided on whether accelerating inflation or slowing inflation over the next 12 months was more worrisome. This mirrors a spilt in the Fed with some officials arguing that the downturn in housing prices is causing key measures to understate price increases and others focused on the decline in core inflation. Ben Bernanke seems to be in the latter camp, which is reflected in the economists continuing to push back when they expect the Fed to begin raising rates.

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