> Breaking News Alert
> The New York Times
> Thu, July 29, 2010 -- 12:24 PM ET
> -----
>
> Fed Board Member's Deflation Warning Hints at Policy Shift
>
> James Bullard, the president of the Federal Reserve Bank of
> St. Louis, warned on Thursday that the Fed's current policies
> were putting the American economy at risk of becoming
> "enmeshed in a Japanese-style deflationary outcome within the
> next several years."
>
> The warning by Mr. Bullard, who is a voting member of the Fed
> committee that determines interest rates, comes days after
> Ben S. Bernanke, the Fed chairman, said the central bank was
> prepared to do more to stimulate the economy if needed,
> though it had no immediate plans to do so.
>
> A subtle but significant shift appears to be occurring within
> the Federal Reserve over the course of monetary policy, amid
> increasing signs that the economic recovery is weakening. Mr.
> Bullard had been viewed as a centrist, and associated with
> the camp that saw inflation, the Fed's historic enemy, as a
> greater threat than deflation.
>
> Read More:
> http://www.nytimes.com/2010/07/30/business/economy/30fed.html?hp&emc=na
>
> Copyright 2010 The New York Times Company
--
Jim Devine
"All science would be superfluous if the form of appearance of things
directly coincided with their essence." -- KM
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