In advance of Fed Chairman Bernanke's semi-annual testimony to the House and Senate on Wednesday and Thursday of this week, AEI economist John Makin will recap his recent Economic Outlook where he warns of the possible danger of deflation.

Many policymakers have warned that the Fed's aggressive response to the financial crisis and the Obama Administration's deficit spending will lead to serious inflation. Contrary to those expectations, Makin argues that a different danger is lurking: deflation, during which falling prices increase the burden of existing debt and harm profit margins.

Makin will explain the current economic outlook and discuss what options the Fed may have in view of the fact that interest rates are so low.

To participate in the conference call tomorrow on Wednesday, July 21, 2010 (10:30 to 11:00 a.m.), please contact Veronique Rodman at vrodman@aei.org (202-862-4871) or Hampton Foushee at hampton.foushee@aei.org (202-862-5806) to obtain dial-in information prior to the call.

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