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Low Rates, Huge Deficits to Continue

Economist David Levy says the U.S. government will have to continue to finance the economic recovery with its balance sheet.

March 9, 2010

Don't worry about higher interest rates or inflation, said one economist today. But also don't expect huge government budget deficits to shrink anytime soon.

The Federal Reserve won't be able to tighten interest rates for several years, and the U.S. government will have to continue easy-money policies and deficit spending for a lengthy period, said David Levy, an economist and chairman of The Jerome Levy Forecasting Center, on Tuesday at the CFO Rising conference in Orlando. Read more...

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