Anthony Chan
Anthony Chan
bite corporate costs either energy higher impact lower prices raise starting
The impact of higher energy prices is starting to bite corporate America. It's either going to raise costs or lower demand.
argue borrowing capacity consumer excess higher income ratio side
The consumer credit-to-disposable income ratio is much higher than it was in the '50s, so you can't argue that there is as much excess capacity on the borrowing side as there was in the '50s,
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.
consumers costs energy higher outlets shown studies switch tend
Our own studies have shown that consumers tend to switch over to non-store outlets in times of higher energy costs .
blow consumer cushion economy energy feared great helps higher hit lower means prices
Lower energy prices will cushion the blow to the economy from the higher prices so far. Psychologically, it helps the consumer and that means the hit to the economy will not be as great as feared earlier.
consumer demand downward expect faster growing higher hopeful labor linger peak percent pressure sort turn
If you have productivity growing faster than the economy, how can you expect demand for labor to be all that strong? I'm still hopeful that unemployment won't go much higher than 6.2 percent or 6.3 percent, but where we'll peak is not as important as when we turn around. If we sort of linger at 6.2 percent, that will put some downward pressure on consumer spending.
deficit far higher ignore saying sufficient tolerate
He's saying so far there is sufficient flexibility that we can tolerate a higher deficit than we could 10 years ago. He didn't say ignore it.
clearly economic higher increased oil prices recession risk saying serious
Saying that higher oil prices have not increased the risk of recession or serious economic slowdown is clearly not the same thing as saying that they have not had an impact.
ability diverse higher investing lower markets move offers opportunity portfolio rate return
International investing offers the opportunity for diversification. What you want in a diverse portfolio is the ability to have some markets move differently from other markets. You get a much higher rate of return with lower risk.
bit consumer effect equity higher markets positively react turn wealth
As the equity markets react positively to this change, we get a bit of a positive wealth effect which in turn should induce higher consumer spending.
aware energy fed higher inflation might prices raise
The Fed will raise rates, but they're aware that higher energy prices might do some of their job. And inflation is not so high that they need to panic.
higher housing mortgage question rates shine
There's no question these higher mortgage rates will take some of the shine off the resiliency in the housing market,
expected higher housing impact mortgage rates
Higher mortgage rates are having the expected impact on the housing market.
higher inflation problem risks serious suggest
I think they feel the inflation risks are inching higher, but I don't think they're inching so much higher to suggest we have a serious problem at hand,