Inflation slumping by year end? - I don't think so

A contrarian outlook The other vision by a bank economist. Bank economists are scared more of deflation than inflation. Why am I not surprised. The doves at the Fed will endorse it.

James Shugg, a senior economist at Westpac Banking Corp., talks with Bloomberg's Jeremy Naylor in London about the outlook for economic growth, inflation and interest rates in the U.S., the U.K. and the euro region. (Source: Bloomberg)

on Fed outlook:
The weaknes in the US economy has not been enough to justify a Fed rate cut. We are certainly not looking for the Fed to hike rates this year and even expect an extended period of 2 percent rates into 2009, ....because of the problems in the banking sector.

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video: Shugg of Westpac Sees U.S., U.K. Inflation `Slumping'
Bloomberg
http://www.bloomberg.com/avp/avp.asxx?clip=mms://media2.bloomberg.com/cache/vxEuFETV98YI.asf&vCat=&RND=489430123