"Brian S. Wesbury" is an United States/American economist focusing on macroeconomics and economic forecasting. He is the economics editor and a monthly contributor for The American Spectator, a conservative political magazine, in addition to appearing on television stations such as CNBC, Fox Business Network/Fox Business, Fox News Channel/Fox News, and Bloomberg TV frequently. He is a member of the Academic Advisory Council of the Federal Reserve Bank of Chicago, and for five years served as an adjunct professor of economics at Wheaton College (Illinois)/Wheaton College in Wheaton, Illinois.

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Once we get beyond two or three percent deflation, we have problems because we can't drive interest rates low enough and we begin to have unanticipated drops in prices.

When we look at these numbers today, I don't think it's going to cause the Fed to move at all. Inflation is still low...the job market is growing moderately.

The numbers we've seen over the past few months have to make them feel better about their stance in monetary policy. It will allow them to remove some of the pressure they feel to maybe raise rates, and in effect move toward lowering rates.

Data are pointing to very strong growth in the fourth quarter. The pessimistic viewpoint, which has seen its grip on reality slip to the last knuckle in the past few months, is now holding on by its fingernails.

Despite the decline in headline producer price pressures, the risks of deflation have clearly vanished and signs of inflationary pressures have emerged. With the Fed holding real rates below zero, we expect producer prices to continue their upward trend in the months ahead.

Now when people start to put together the pieces, it sure looks like the damage done to the financial markets from deflation around the world and a Fed that's too tight is beginning to rear its ugly head.

Business investment is on the rise, manufacturing activity is gaining momentum, and sustained job growth is just around the corner.

I believe the Fed is holding rates excessively low today -- current monetary policy is inflationary, ... they could scratch out 200 basis points over six months and have minimal effect.

This is the best environment for not only employers but employees, because we're really getting down to the most efficient use of all resources in our economy.