Eventually, the Fed would be forced to crack down and, as in the early 1980's, drive the economy into a steep recession.

It was manufacturing that led the economy back from the last steep recession, in 1981-82.

A steep recession will reduce demand for foreign goods and lower the trade deficit.

"When you consider the high debt levels of American consumers, you can't rule out a steep recession," he added.

The steep recession led many employers to resist union demands.

It would provide uncapped Federal help to states during steep recessions.

However, the state itself fell on hard times several years ago, in part because of a steep recession.

"If something happens it will be external; something like a stock market crash or a steep recession."

That would be serious but insufficient to cause a steep recession.

The economy fell into the steepest recession since the Great Depression.