ICS Magazine

U.S. in no danger of deflation-Treasury's Snow

May 9, 2003
CLEVELAND, Mississippi, May 9 (Reuters) - U.S. Treasury Secretary John Snow said on Friday he sees no risk of a significant deflation in the United States and said any comparisons with Japan are inappropriate.

"I don't think the U.S. has any risk of being in a significant deflationary period and any comparisons to Japan I think would be inappropriate," Snow told reporters at a news conference after meeting with business leaders at Delta State University in Cleveland, Mississippi.

The Treasury chief said the tax package being discussed in Congress should help the U.S. economy which he said was in a less robust recovery than he would like to see.

The Federal Reserve said on Tuesday that it was concerned about the possibility of a possible "unwelcome substantial fall in inflation."