Perhaps the most meaningful comment in early September came from Dallas Fed President Fisher, who spoke of deflationary concerns and sluggish growth. He said, “for the immediate future, the risk to price stability is a deflationary risk, not an inflationary one” and that “we are likely to see a prolonged period of sluggish economic performance and uncomfortably high unemployment as businesses reallocate capital and labor to fit the new economic landscape.”
For anyone’s guess or comment : how long is “prolonged” ?