Jan Hatzius, Chief U.S. Economist, Goldman Sachs

Jan Hutzius says the “inflation scare” of 2006 is “abating pretty quickly.” The chief economist at Goldman Sachs predicted that by the middle of 2007, the U.S. economy will be “back in the comfort zone.”

Hutzius said the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) deflator show that the economy is well-balanced.

However, he pointed out to "Street Signs" host Erin Burnett that while inflation is “coming down,” it will still be positive. So don’t expect deflation – an actual drop in prices – in 2007, Hutzius says.