Anthony Chan
Anthony Chan
core cost early energy increases jump limited longer mature pass power pricing rest saw seeing today whenever
We still see limited penetration into the rest of the economy. It's too early to say you're seeing pricing power to pass on the energy cost increases just because you saw just a jump in the core PPI number. The world has changed. In the old traditional world, whenever you had mature expansion, you had pricing power. Today with globalization, that's no longer the case.
bank central consumer consumers continues encourage giving inflation lower numbers report spending whatever
The CPI report continues to be encouraging, ... These numbers are stimulating consumer spending by giving consumers more spending power. At the same time, lower inflation will also encourage the central bank to do whatever they need to do.
factors good
There are a lot of good factors out there.
assured continue fed higher markets push rates remain short term
With this figure, markets can remain all but assured that the Fed will continue to push short term rates higher well into 2006.
economy fed greenspan seems structure underlying willing
Greenspan has to give reassurance that, if things deteriorate, the Fed is willing to act. But the underlying structure of the economy seems pretty good.
economy energy fate federal prices reserve
The Federal Reserve and energy prices really have the fate of the economy in their hands.
bite cause debate doubt economy fairly growing percent remains whether
I don't have any doubt it's going to bite. The debate is whether it'll bite enough to cause a recession, and I don't think so. Because the economy remains fairly strong, it can withstand these one-two punches. If we were growing at 1 or 2 percent and we got this same one-two punches, the ref would tell everyone to go home.
economy energy head higher hit interest prices rate seen
But what we've seen is if you hit the economy over the head enough times with higher energy prices and short-term interest rate hikes, it reacts.
economy factor increased order players realizing support
A lot of players in the economy are realizing this is a sustainable expansion. That's a factor you must have in order to support increased hiring.
economy good report tells
This is actually a good report because it really tells us the economy is healthy.
collapse economy people
Even when people thought the economy would collapse because of the hurricane, it didn't.
balanced best chance coming economy moderate recovery since turning
This is an economy coming back, but it's going to be a moderate recovery. But we should not despair, since a balanced recovery has the best chance of turning into a longer-lasting recovery.
administer economy-and-economics point policy time
They (Fed policy makers) know at any point of the time they may need to administer CPR to this economy.
automobile equivalent exciting financing itself months november warmer weather work
This is an exciting number, but it was warmer in November than usual. The warm weather is the equivalent of zero-percent financing on automobile sales. You're going to see this work itself off in months to come.