there's a lot of stimulus being pumped into it on the fiscal side of the economy from tax cuts and from spending. one of the things we do have to worry about it what's happening with budget deficits and what will happen when this fiscal stimulus runs out. >>jon: the president is upset with the fed for raising interest rates. the fed is trying to keep inflation at two percent. the latest figures show it's just a tiny bit above that, right? >> right so, the inflation rate isn't two-person but it was running below for most of its expansion. because we had a very soft economy and as a result of that, the fed did a lot of unusual things to speed economic growth up to get inflation higher. they pushed interest rates down to zero and left them there for a long time. they bought a lot of mortgage and treasury bonds. now inflation, think of it as like a temperature gauge on a patient's health. inflation is back at two percent point it's kind of like a healthy 90.6 percent temperature for a patient. so the fed is normalizing interest rates - - 98.6 percent temperature.
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