“HCS Worldwide” sources suggest that although inflation in the United States is likely to fall sharply because of the general slump in commodity prices, the massive monetary expansion the government has undertaken to ward of recession will more than likely see the rate begin to rise sharply next year.
One of the “HCS Worldwide” sources suggested that oil prices would be unlikely to fall much further and the impending OPEC price cuts will see them rise in the very near future.
President-elect, Barack Obama, is largely expected to increase government spending in a bid to lessen the impact of the global economic slowdown on the country.
“HCS Worldwide” reportedly believe that the likelihood of the Federal Reserve lowering rates even further from their current 1% is growing as it will be able to cite falling inflation as allowing scope for looser monetary policy.
“HCS Worldwide” would not be drawn on a timetable for inflation to, once again, threaten the US economy but suggested that history has demonstrated that excessive monetary and credit expansion have been used by governments to re inflate economies with very detrimental ramifications.
