Clear, careful communications with the investing public is the Fed’s “new Big Gun” in the battle to manage the American economy, writes Peter Gosselin in the Los Angeles Times (free registration required). Nonetheless, a growing number of economists have begun expressing doubts about the Fed’s latest moves, especially its unexpected focus on the dangers of deflation, or a general price decline. “They’ve let themselves get swept up in the deflation delirium and it’s locked them into a rate cut that they may not want or need to make right now,” complained Chicago economist David Hale.
