Doubting deflation

- Macro viewpoint: Doubting deflation "While deflation, which we define as a YoY decline in prices, is a possibility, what is needed to trigger a policy response and more relevant to the broader economy is the prospect of a general and sustained deflation. General in that the decline in prices is widespread, and sustained in that these declines persist for a protracted
period of time. If the economy evolves roughly according to our expectations, the risk of a sustained price deflation remains unlikely."
- Fed watch: Avant le déluge "Next week’s semiannual testimony by Fed Chairman Bernanke should address a number of issues raised by the June FOMC minutes."
- The week ahead: Housing to remain weak "The housing market takes center stage next week: builder sentiment, housing starts and existing home sales are all released. With the homebuyer tax credit pulling sales forward into the spring, we expect the general tone of the data to be weak. While the data calendar is light, the Fed calendar heats up. Chairman
Bernanke heads to Capitol Hill to deliver his semi-annual monetary policy report to both houses of Congress. On Wednesday, he testifies before the Senate and on Thursday before the House."
Merrill Lynch US Economic Weekly 20100716

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