Deflation and Interest Rates

Yesterdays Wall Street Journal had an interesting article; Deflation Threat Likely to Keep Cap on Rates.    With the current fear in the market long-term rates have dropped and I am now a believer that long-term rates will stay low for the near future.  The one wild card is how the Fed will act and if they will raise short-term rates or even hint at raising rates.    This article makes the argument that the deflation hawks on the Fed have more ammunition for their case, therefore they should continue to win the argument that rates should stay low.  Hopefully they are correct.