Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

Current DateTime: 04:53:19 12 Nov 2009
LinksList Documentid: 24355697
powered by digg
See all Play-by-Play postsSee all Power Lunch posts
Text Size
Jun.25
3:11 PM ET
Monday, 25 Jun 2007
Deutsche Bank Economist Says Fed Will Hold Steady

As the Federal Open Market Committee prepares to meet this week, Joseph LaVorgna, chief U.S. economist at Deutsche Bank, joined "Power Lunch" at New York's Four Seasons to discuss inflation, the economy, and how the Fed will react to the subprime mess.

Despite weaker home prices and the subprime situation, LaVorgna doesn't believe that "those two factors together will be enough to really kill the economy." He said, "it's certainly not going to be a situation where the Fed is raising rates ... we’re probably going to muddle along here for a bit longer." The FOMC meets Wednesday and Thursday, with an interest rate decision expected Thursday afternoon.

LaVorgna doesn’t see the subprime issues easing up any time soon either, saying "there’s going to be a lot more foreclosures to come over the next couple of years."

Beyond that, LaVorgna sees lower core inflation as the next story. "We think inflation will continue to move lower because as all these housing units come on the market, the residential vacancy rate will rise, rents will weaken and your core rate will fall," he said.

© 2009 CNBC.com

Tools:
PrintEmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
  • They may have wrecked their companies or saved our economy. Tell us what you think.
  • Big pharma embraces social media, but how much should a tightly regulated sector say on Facebook or Twitter?
  • A European dating site finds lovelorn singles from one country to be consistently uglier. Which is it?
  • Contributor David Pogue looks at two of the latest efforts to perfect the digital pocket camera.
  • PepsiCo is ramping up its onsite health facilities for workers.
ADD COMMENTS
Remaining characters


Current DateTime: 02:33:18 12 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 11:27:46 12 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 04:10:05 12 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:00:12 12 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters