Professor of Economics Ann Owen, along with the chief fixed income strategist at Morgan Stanley, was interviewed on American Public Media’s Marketplace about the decisions the Federal Reserve might make on interest rates and the possible effects these decisions might have on inflation rates. The syndicated program was broadcast across the nation on public radio stations on Oct. 15.
“What the concern is is that because of the momentum, they won't be able to stop it,” said Owen about the Fed’s possible actions to increase the rate of inflation. “It's really hard to put the breaks on without skidding and I think that's what the people who are concerned about inflation are worried about.”
In response, the interviewer commented that, “… even Ben Bernanke admitted today he's wading into uncharted waters. But for now, deflation appears to be the central bank's biggest fear.”