• May have inflation risk in medium-term because of fiscal deficit, ultra easy monetary policy
• Europe crisis hasn’t pushed back timing of next move in Fed funds rate
• Don’t see singns of contagion from Europe to U.S., Asia
• Change in Fed funds rate depends on how U.S. economy recovers
• U.S. recovery will have to be more firm before moving Fed funds rate
• U.S. benefitting from Europe crisis as flight-to-quality pushes down long-term treasury yields
• U.S. private sector jobs growth to be stronger in Summer
• U.S. housing market weakness could be distorting core consumer prices
• Now is not the time to continue normalising the discount rate