Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

NY Fed Geithner an Inflation Hawk?? Sparks 3% Rally ! Huh????

Fed Governors Warn of Deficit, Rate Hikes
Thursday March 25, 2:58 pm ET By Pedro Nicolaci da Costa

NEW YORK (Reuters) - A ballooning U.S. budget deficit and low savings rate pose risks to the economy and financial system, New York Federal Reserve President Timothy Geithner said on Thursday. Other top Fed officials warned interest rates could not stay low forever. "The current deterioration in the U.S. fiscal position and the acute decline in the net national savings rate represent risks to the financial system and the economy as a whole," Geithner told a regional bankers' association. In his first major speech since taking his new post, Geithner said such looming threats were made all the more worrying by the size of the U.S. current account deficit and the unprecedented scale of financing needed to fund it.
He also noted that U.S. inflation was very low and the outlook was for only very modest prices rises ahead, but offered little in the way of hints on monetary policy.