Richard Berner Downside Quotations

If we are right that both the pace of economic activity and corporate earnings are still fraught with near-term, downside risk, equity values and risk spreads will carry a recession uncertainty premium for some time -- a premium that the Fed will still want to counter.

Fed policy makers made a statement that they want to really underpin the recovery. They've seen the downside risks and they want to make sure that low inflation and disinflation does not morph into deflation.