One of the bears’ favourite chief economists — Goldman’s Jan Hatzius — is sounding more and more optimistic these days.
We noted last month that Hatzius was setting himself apart from the QE doomsayers who thought Bernanke was irresponsibly printing money, and though he’s since then been sceptical that QE would have a gigantic effect, he’s clearly becoming more sanguine.
In a new note, via Bloomberg, he writes: “The widespread hostility to the Fed’s actions is misplaced… Downside risks to the economic outlook have declined significantly. U.S. inflation is unlikely to become a problem for years.”
For a counterpoint on the QE debate, see this week’s latest from Hussman.